Homework Help:

1,

A binding price oor will tend to cause a _______ in the market, and will _______ the total quantity sold. 0 shortage; increase 0 shortage; decrease . surplus; increase 0 surplus; decrease Supply PRICE P K V N Demand QUANTITY A per unit tax of (P' - P""') is implemented in this market. (a) Total surplus before the tax is equal to [ Select ] (b) Total surplus after the tax is equal to [ Select ] VThe vertical distance between points A and B represents a tax in the market. .3 M di Gd 9 B T 6 5 4 3 2 1 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 QUANTITY Consumer surplus without the tax is 0 $10, and consumer surplus with the tax is $4.50. 0 $10, and consumer surplus with the tax is $1.50. 0 $6, and consumer surplus with the tax is $4.50. 0 $6, and consumer surplus with the tax is $1.50. The vertical distance between points A and B represents a tax in the market. PRICE 51015202530354045505560 QUANTITY (a) Consumer surplus after the tax is . (b) The amount of tax revenue collected is equal to . (c) The deadweight loss is equal to [Select] V . A per-unit tax on buyers will _______ the price paid by buyers and will _______ the price received by sellers. 0 lower; raise O raise; raise O raise; not affect O raise; lower 12 11 -+ 10 Supply Demand 20 40 60 80 100 120 140 160 180 200 220 240 (a) A price floor of $6 in this market would lead to [ Select ] V units being sold. (b) A price ceiling of $8 in this market would lead to a deadweight loss of [ Select ]