Price of yachts $220 000 200 000 180 000 S 160 000 140 000 120 000 100 000 30 000 60 000 40 000 20 000 D 0 2000 4000 6000 8000 10000 12 000 Number of yachts Reference: Ref 7-6 (Figure: The Market for Yachts) Look at the gure The Market for Yachts. If the government imposes a $30 000 tax on yachts (collected from the producers), the price of yachts will rise to and the government will collect tax revenue equal to a. $120 000; $90 million b. $160 000; $120 million c. $100 000; $120 million . .. (1. $140 000; $90 million Q1 02 Quantity Reference: Ref 720 (Figure: A Market with a Tax) Look at the gure A Market with a Tax. The transfer of consumer surplus to the government is equal to: a. C. b. F. c. B. Dd. D. $7.50 7.00 S Zoom In 6.50 6.00 5.50 E 5.00 4.50 4.00 3.50 3.00 2.50 2.00 5 6 7 8 9 10 11 12 13 14 15 Quantity of rides (millions per year) Quantity Demanded Quantity Supplied Fare millions of (millions of (per ride) rides per year) rides per year) $7.00 14 6.50 13 6.00 12 5.50 11 5.00 10 10 4.50 11 4.00 12 100 10 3.50 13 3.00 14 Reference: Ref 7-2 (Figure and Table: The Market for Taxi Rides) Look at the figure and table The Market for Taxi Rides. The figure represents a competitive market for taxi rides. If the government imposes an excise tax of $2 per ride (causing the supply curve to shift upward by that amount), then the government will collect tax revenues of but there will be a deadweight loss to society of caused by this tax. Oa. $48 million; $6 million Ob. $8 million; $1 million Cc. $16 million; $2 million Od. $24 million; $4.5 millionQuantity of strawberries Quantity of Shortcake Reference: Ref 10-10 (Figure: A Changing Budget Constraint for Strawberries and Shortcake) Look at the gure A Changing Budget Constraint for Strawberries and Shortcake. Seb's original budget line is given by BL1 and his original indifference curve is given by 11. Which of the following would have caused his budget line to move to BLZ? a. The price of strawberries increased. b. The price of Shortcake increased. c. Seb's income decreased. d. The price of strawberries decreased. Cell phone minutes Gasoline (litres) Reference: Ref 10-11 (Figure: Income and Substitution Effects) Look at the gure Income and Substitution Effects. Carlos is originally consuming his optimal consumption bundle at point A in the gure when the price of gasoline falls. As Carlos moves to his new optimal consumption bundle, we observe that gasoline: a. is not an ordinary good. b. and good L are complements. is an inferior good. a? . is a normal good. Cell phone minutes Gasoline (litres) Reference: Ref 10-11 (Figure: Income and Substitution Effects) Look at the gure Income and Substitution Effects. Carlos is originally consuming his optimal consumption bundle at point A in the gure when the price of gasoline falls. The movement from K1 to K2 reects: a. the income effect of the price decrease of gasoline. b. the substitution effect of the price decrease of gasoline. c. the total change in quantity demanded due to the decrease in the price of gasoline. the income effect of the price decrease of gasoline and the substitution effect of the price decrease of d. . gas olme