Can some one help me for those questions? thank you
Use the mid-point method (arc elasticity formula) to answer this question. People's income increases from $8,000 to $12,000. As a result, the demand for instant ramen noodles decreases from 13 to 7. What is the income elasticity of demand for instant ramen noodles? 1.5 O-1.5 1 0.66 -0.66Anna's demand for brownies is Qd= 100 - 2 P. The price of cheesecake decreases by 10%. As a result, Anna's demand for brownies decreases from 12 brownies to 8 brownies. What is the cross- price elasticity of demand for Anna for these two goods? Use the mid-point method (arc elasticity formula). 4; substitutes 4; complements O-4; substitutes O-4; complementsThe diagram shows the domestic supply curve (5) and demand curve for a good. Assume that the world price is equal to $20 per unit, and initially there are no trade restrictions in place. 102033405080705390 If a tariff of $10 per unit is introduced in the market, then the deadweight loss will equak 0 None of the above. The diagram below illustrates the domestic supply curve (5) and demand curve for a good. Assume that the world price is equal to $5 per unit, and that initially there are no trade restrictions. 15 - ......... 1o ".5 ................. 5 ........ i, .......... 0 If a tariff of $10 per unit of imports is introduced, which area represents the tariff revenue raised? The diagram below illustrates the domestic supply curve (S) and demand curve for a good. Assume that the world price is equal to $5 per unit, and that initially there are no trade restrictions. 0 If a tariff of $10 per unit of imports is introduced, which area represents the deadweight loss? 0 a+f. ()c+e @a+b+c+e+f+g. C)a+b+d+h+g+t The diagram shows the domestic supply curve (5) and demand curve for a good. Assume that the world price is equal to $20 per unit, and initially there are no trade restrictions in place. w v .......... , ...... _. .................... =.... I I c bl I I I I I . . '5 .. ................. s ........... . ...... .. ...... l ...... ....... I I : . '0 ..... " .................... f ...... It ...... I. ............. I.... : : : : : a ..... o. ...... a.- ............................... I ........... I I I : I m ..... ' ' ' s I ' ...... ~ ............... ' ...... _ ...... s ...... . .......... ' : : : - l I "i : If a tariff of $10 per unit is introduced in the market, then, at the new equilibrium: 0 Consumers will pay a price of $20, quantity sold will be 60 units, of which 40 are imported. 0 Consumers will pay a price of $30, quantity sold will be 40 units, of which 30 are produced domestically. 0 Consumers will pay a price of $20, quantity sold will be 60 units, of which none are produced domestically. 0 Consumers will pay a price of $30, quantity sold will be 40 units, of which none are imported. The diagram shows the domestic supply curve (S) and demand curve for a good. Assume that the world price is equal to $20 per unit, and initially there are no trade restrictions in place. 1020m40506070HI90 If a tariff of $10 per unit is introduced in the market, then the government will raise in tariff revenue. The price of good Y decreased from $7 to $5. Meanwhile, the sales of good X increased from 10 units to 14 units. Cross-price elasticity of demand of goods X and Y, calculated using the midpoint method (this is the same as the arc elasticity method), is ___and goods X and Y are_ - 1; complements 1; complements O- 1; substitutes 1; substitutesDecades ago, Canada used to provide the price support program to support wheat producers from the 1940's to 1970's. It is still a commonly used government program in the U.S. agricultural market. What is the agricultural price support program? C The price support program sets price floors and then the government subsidizes. The price support program sets price floors and then the government buys the surplus. O The price support program sets price ceiling and then the government imports the shortage. The price support program sets price ceiling and then the government buys the shortage.Which of the following statement is true? At the market equilibrium price: Buyers who value the product more than the equilibrium price will purchase the product; those who do not, will not purchase. In other words, the free market allocates the supply of a good to the buyers who value it most highly, as measured by their willingness to pay. At the market equilibrium price: Sellers whose costs are less than the equilibrium price will produce the product; those whose costs are higher will not produce the product. In other words, the free market allocates the demand for goods to the sellers who can produce it at the lowest cost. Total surplus is maximized at the market equilibrium. All of the aboveAnna's demand for brownies is Qd= 100 - 2 P. Anna got a raise at work, and her income increases by 25%. As a result, her demand for Cheetos decreases by 20%. What is Anna's income elasticity of demand for Cheetos? What does this income elasticity tell us about Anna's valuation of Cheetos (are Cheetos normal or inferior goods)? O0.8; normal goods O- 0.8; normal goods 0.8; inferior goods O- 0.8; inferior goodsA price ceiling is imposed by the government on the price of milk. This price ceiling is effective and results in an excess demand of 10 units of milk. If the demand for milk is given by the equation P = 60 - 4Q, and the supply of milk is given by the equation P = Q, then the price ceiling must be equal to $10 $12 $4 $20Suppose a tax is levied in a market in which demand is downward sloping and supply is perfectly elastic. Which of the following statements is/are TRUE? (Assume the market is perfectly competitive.) |. Producer surplus decreases. ||. The deadweight loss is zero. \"I. Consumers bear all the burden of the tax. 0 || only. 0 | and II only. Price of . Ice-Cream Pr'ce Cone Equilibrium buyers pay \\ $3_30 . T$050 ........................... . Price 3_00 . "$35.1 ..... '. ..... 2 ....................... 5 ....: without 2.80 ............................................. E E Equilibrium without tax tax ' i Price sellers receive Demand, 01 0 90 100 Quantity of IceCream Cones Given the graph above, which of the following statements about tax incidence is TRUE? O Consumers bear more of the burden of a tax than producers (i.e. Consumer tax incidence is larger than producer tax incidence). O Consumers bear none of the burden of a tax 0 Producers bear none of the burden of a tax 0 Producers bear more of the burden of a tax than consumers.(i.e. Producer tax incidence is larger than consumer tax incidence). Which of the following correctly describes the equilibrium effects of a per-unit tax, in a perfectly competitive market? O Consumer and producer surplus increase but total surplus decreases. O Consumer and producer surplus decrease but total surplus increases. O Consumer surplus, producer surplus, and total surplus all increase. 0 Consumer surplus, producer surplus, and total surplus all decrease. Refer to the supply and demand diagram below. 5 If an output (excise) tax of $5 per unit is introduced in this market, the price that consumers pay will equal ____ and the price that producers receive net of the tax will equal _____ . 0 $5; $10. 0 $6; $11. 0 $7; $12. 0 $8; $3. Which of the following statements about the economic incidence of taxation is TRUE? |. If demand is elastic, producers will bear a greater burden of the tax than consumers. II. If supply is perfectly inelastic, producers will bear all the burden of the tax. \"I. If the supply curve is perfectly elastic, consumers will bear none of the burden of the tax. @ || only. 0 | and II only. 0 II and I\" only. 0 I, II and III. Suppose market demand for music CDs (in millions per year) is given by the equation QD=9-P, while tickets are supplied according to the market supply equation QS=P-1. Suppose the government imposes an excise tax on music CDs of $2 each. Calculate the consumer tax incidence (CTI), producer tax incidence (PTI), and the deadweight loss (DWL). CTI = $3; PTI = $3; DWL = $2 O CTI = $4; PTI = $4; DWL = $2 O CTI = $3; PTI = $3; DWL = $1 O CTI = $4; PTI = $4; DWL = $1
