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Q21 0.15 Points Consider the market for good X. Suppose that the government offers a subsidy. In the market equilibrium with government intervention, a decrease in the cost of inputs for good X leads to O A. an increase in quantity and no change in both prices. O B. an increase in both prices and a decrease in quantity. O C. a decrease in both prices and no change in quantity. O D. an increase in quantity and a decrease in both prices. O E. None of the above. Q22 0.15 Points Consider the market for good X. Suppose that the government offers a price support. In the market equilibrium with government intervention, a sudden hurricane that destroys many of the firms' factories where good X is stocked leads to (assume that the price support is effective after the hurricane destroys stock) O A. an increase in quantity and no change in price. O B. an increase in price and a decrease in quantity. O C. a decrease in quantity and no change in price. O D. an increase in quantity and a decrease in price. O E. None of the above. Q23 0.15 Points Demand and supply are defined by P = 100-4Q and P = 6Q + 10. Suppose that the government imposes a sales tax of $7. In a market equilibrium with government intervention, DW L** is equal to O A. $1.85. O B. $2.45. O C. $3. O D. $3.8. O E. None of the above.024 0.15 Points Demand and supply are defined by P = 1004Qd and P = GQ" + 10. Suppose that the government offers a subsidy of 6 dollars. In a market equilibrium with government intervention. P5\" is equal to 025 0.15 Points Demand and supply for good X are dened by P = 1262\": and P = (23/2. Suppose that the government deems good X unhealthy for consumers and thus buys an amount equal to exactly half of what is sold in a market equilibrium without government intervention (in order to destroy it). In a market equilibrium with government intervention, PM is equal to 026 0.15 Points Consider the demand for good X. Suppose that, in response to an 16% increase in price. quantity demanded decreases by 4%. Then, the price elasticity of demand is equal to Q27 0.15 Points Based on your answer to Question 26, how would you classify the elasticity of demand for good X? O A. Elastic. O B. Inelastic. O C. Unit elastic. O D. Perfectly elastic. O E. None of the above. Q28 0.15 Points Suppose that the demand side of the market for orange juice is composed of three individuals, A, B, and C. Let P be the price of one liter of orange juice and Qd be the quantity demanded of orange juice in liters. . Individual A buys only one liter of orange juice if the price falls below her reservation (or choke) price of 20 dollars. Individual B's demand for orange juice is defined by Qo = 10-2P. Individual C's demand for orange juice is defined by P = 10-2Q2. The choke price of Individual B is O A. $10. O B. $20. O C. $5. O D. $2. O E. None of the above.Q29 0.15 Points Suppose that the demand side of the market for orange juice is composed of three individuals, A, B, and C. Let P be the price of one liter of orange juice and Qd be the quantity demanded of orange juice in liters. . Individual A buys only one liter of orange juice if the price falls below her reservation (or choke) price of 20 dollars. . Individual B's demand for orange juice is defined by Q% = 10-2P. . Individual C's demand for orange juice is defined by P = 10-2Q2. The maximum quantity demanded of orange juice in the market is O A. 16. O B. 15. O C. 13.5. O D. 17. O E. None of the above.030 0.15 Points Based on the table below. what is the valuation of 5 units. V{5)? q M VG) 0 - 1 $20 2 $18 3 $15 4 $12 5 $3 5 $3 Q31 0.15 Points Suppose that the price is P=$5. Based on the table below, how many units should be bought to maximize the buyer's gains from trade? O A. 3. O B. 4. O C. 5. O D. 6. O E. O. V (q) O $0 $12 N $19 3 $26 4 $32 5 $36 6 $38032 0.15 Points Based on the table below. and given that the price of each unit is $4. how many units should be sold to maximize the seller's gains from trade? q 0(9) 0 $0 1 $5 2 $10 3 $17 4 $25 033 0.15 Points Suppose that the supply side of the market for electrical power is composed of three sellers. A, B. and C. Let P be the price of one unit of electricity and Q be the quantity of electricity. Seller A owns a nuclear power plant with a constant marginal cost of $4 and can produce a maximum of 10 units. Moreover. the nuclear power plant must produce a minimum of 2 units. Seller B owns a coal-red power plant with a constant marginal cost of $7 and can produce a maximum of 5 units. Seller C owns a coal-red power plant with a constant marginal cost of $7 and can produce a maximum of12 units. The maximum quantity of electricity that the market can produce is Q34 0.15 Points Suppose that the supply side of the market for electrical power is composed of three sellers, A, B, and C. Let P be the price of one unit of electricity and Q be the quantity of electricity. . Seller A owns a nuclear power plant with a constant marginal cost of $4 and can produce a maximum of 10 units. Moreover, the nuclear power plant must produce a minimum of 2 units. . Seller B owns a coal-fired power plant with a constant marginal cost of $7 and can produce a maximum of 5 units. . Seller C owns a coal-fired power plant with a constant marginal cost of $7 and can produce a maximum of 12 units. Suppose that market demand is defined by Q* = 20-2P. In the market equilibrium without government intervention, Q* is equal to O A. 15. O B. 10. O C. 2. O D. 20. O E. 27.Q35 0.15 Points Suppose that the supply side of the market for electrical power is composed of three sellers, A, B, and C. Let P be the price of one unit of electricity and @ be the quantity of electricity. . Seller A owns a nuclear power plant with a constant marginal cost of $4 and can produce a maximum of 10 units. Moreover, the nuclear power plant must produce a minimum of 2 units. . Seller B owns a coal-fired power plant with a constant marginal cost of $7 and can produce a maximum of 5 units. . Seller C owns a coal-fired power plant with a constant marginal cost of $7 and can produce a maximum of 12 units. Suppose that market demand is defined by Q* = 20-2P. In the market equilibrium without government intervention, P* is equal to O A. 10. O B. 20. O C. 4. O D. 5. O E. 7