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QUESTION 1 If a price floor (or legal minimum price) were imposed on the market for apples, the quantity of apples actually traded would decrease. possibly increase or decrease, depending on the value of the price floor. not be affected by the price floor. increase. QUESTION 2 If a subsidy were paid for golf balls, the quantity of golf balls actually traded would not be affected by the subsidy. increase or decrease, depending on the size of the subsidy. decrease. increase. QUESTION 3 A quota on buying pumpkins would have effects on the pumpkin market similar to a price floor. a subsidy for pumpkins. a tax on pumpkins. a price ceiling.QUESTION 4 If a tax of $6 per unit were placed on the market depicted in the graph below, the social deadweight loss would be $14 $13 + Demand $12 $1 1 # Supply $10 $9 $8 Price $7 $6 $5 $4 $3 $1 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Quantity (thousands) $6. $6 thousand. $12 thousand. QUESTION 5 When the government imposes a tax on a good, the loss of consumer and producer surplus can be less than or greater than the amount of tax revenue collected by the government, depending on the shapes of demand and supply curves. `is less than the amount of tax revenue collected by the government. " is greater than the amount of tax revenue collected by the government. exactly equals the amount of tax revenue collected by the government. QUESTION 6 Suppose the price elasticity of demand for hotel rooms in a city is -5.0 and the price elasticity of supply is 1.5. If a tax were imposed on hotel rooms, which side of the market would pay most of the tax? Demanders would pay most of the tax. Neither side would pay the tax. Suppliers would pay most of the tax. Both sides would pay half of the tax