ECO 202, 12:30 PM TR Fall 2019 QUIZ 3 DR. HILL PRINT NAME: Key 50 POINTS Demand and Supply for teenage labor: Price (dollars per pizza) S + tax on sellers S Price (cents per Quantity Demanded Quantity Supplied Brownie) (millions per day) (millions per day) 25 12 6 50 12 12 75 12 18 0 10 20 30 40 50 60 70 80 90 100 100 12 24 Quantity (thousands of pizzas) 125 12 30 (5 pts.) 1.) In the graph above on the left, what is the size of the excise tax? $3 d (5 pts.) 2.) In the table below on the right, if brownies are taxed $.50 each, how much of the tax is paid for by consumers and producers? 100% by consumers I half way. (5 pts.) 3.) In the table above on the right, if a minimum wage is set at $16 an hour for teenagers, what is the decrease in employment (remember to scale your answer properly)? 1,000 hours per months Price (dollars per gallon) X Price (dollars per bushel) MSDrought MSNormal MSBumper A w w N 100 200 300 400 500 600 10 Quantity (millions of gallons per year) Quantity (millions of bushels) (5 pts.) 4.) What is the total revenue in the above graph on the right when there is a drought crop year? $36 million (5 pts.) 5.) Why would a bumper crop year spell disaster for cherry farmers? The increase in supply from the bumper crop will cause the price of cherries to decline. Since the demand for cherries is inelastic this will cause the total revenue for cherry farmers to decrease. (5 pts.) 6.) If the government gave farmers a $1 per gallon subsidy in the above graph on the left what would be the approximate new equilibrium price in the market? Around $3.50 (5 pts.) 7.) In which market structure would Hulu be most likely to compete? Oligopoly (5 pts.) 8.) In which market structure would the U.S. Postal Service be most likely to compete? Monopoly Firm 9.) Market shares of chocolate makers are: Mayfair, Inc. Market Share(percent) Bond, Inc. 30 Magic, Inc. 20