Question 1

A tax on a market for a good will not generate any DWL if the tax is levied on buyers. demand is perfectly elastic. cthe tax is levied on sellers. demand is perfectly inelastic.

Question 2

Consider the market for good H. A tax is imposed on the market for good H. The tax is levied on the sellers of good H. Demand and supply are not perfectly inelastic or perfectly elastic.

Which of the following graphs correctly shows the effects of the tax? The graph should correctly indicate CS, PS, tax revenue and DWL.

C Price S CS DWL Tax revenue PS DI D2 Quantity C Price S1 CS DWL Tax revenue D PS QuantityC Price S PS Tax revenue CS D1 DWL D2 Q2 Q1 QuantityC Price CS DVXL PS Tax D1 revenue Dz Q2 Q1 Quantity Question 3 1 pts Priscilla is willing to pay $65 for a new pair of shoes. Pandora is willing to pay $50 for the same type of shoes. The shoes have a price of $45. Priscilla buys one pair of shoes and Pandora also buys one pair of shoes. What is the total consumer surplus for Priscilla and Pandora? $35 C$25 $15 $50 $10 Question 4 1 pts The government increases taxes on good A and the sales tax is levied on buyers. Demand and supply are not perfectly inelastic. This will cause a(n) in deadweight loss in the market for good A and a(n)cdecrease; increase in the demand for good A Cincrease; decrease in the demand for good A increase; increase in the demand for good A decrease; decrease in the demand for good A Question 5 1 pts Both Mary and John have a copy of the used ECON201 textbook. Mary is willing to sell the copy for as little as $80, and John is willing to sell the copy for as little as $75. The college bookstore will pay $100 to buy back each copy of the textbook. Mary and John sell their copies back to the bookstore. Calculate the total PS for Mary and John. C$20 C$25 C$45 C$75 C$100 Question 6 1 pts Explain why imposing a sales tax leads to a deadweight loss. CImposing a sales tax can generate tax revenue for the government. CImposing a sales tax reduces equilibrium quantity. Hence, amount of trade decreases. CImposing a sales tax will force buyers to buy more, which leads to an increase in PS CImposing a sales tax will force sellers to sell more, which leads to an increase in CS. Question 7 2 pts Consider the market for good B. Supply of good B is neither perfectly inelastic nor perfectly elastic. Suppose demand for good B becomes more elastic. a. Will tax burden on buyers increase or decrease? [ Select ] b. Will tax burden on sellers increase or decrease? [ Select ] Question 8 1 pts Consider a market for a good. By increasing the tax per unit imposed on the market, the total tax revenue generated will definitely increase. True or False? CTrueFalse The following graph shows the market for good C. The government charges a tax on the market for good C. D1 is the demand before the tax is imposed. D2 is the demand curve after the tax is imposed. Use the given information to answer questions 9 - 16. Price $62 S $50 $45 $38 D2 D1 $15 42 60 Quantity Question 9 1 pts Is the tax levied on buyers or sellers? [ Select ] Question 10 1 pts How much is the tax per unit? Answer: Tax per unit = $ Question 11 1 ptsHow much is the tax burden on sellers per unit of quantity? Answer: Tax burden on sellers per unity of quantity = $ |Question 12 1 pts- How much is the tax burden on buyers per unit cf quantity? Answer: Tax burden on buyers per unity of quantity = 35 Question 13 1 pts Calculate the CS after tax. (Don't forget to multiply 0.5 when you calculate the area of a triangle} Answer: 05 after tax = $ Question 14 1 pts Calculate the PS after tax. (Don't forget to multiply 0.5 when yeu calculate the area of a triangle.) Answer: PS alter tax = it Question 15 1 pts Calculate the total tax revenue generated by the sales tax. Answer: The total tax revenue = 55 Question 18 1 pts Calculate the DWL. {Don't forget to multiply 1.15 when you calculate the area of a triangle.) Answer: DWL = $ The following table shows Bob's demand for pizza slices. Use the given information to answer questions 17 - 19. Bob's Demand Table of Pizza Slices Price per pizza slice Number of slices $9 $7 $5 3 $3 Question 17 1 pts The demand table (demand schedule) can tell us Bob's Cwillingness to sell willingness to pay Question 18 1 pts Suppose the price = $5 per slice. Calculate total CS that Bob can enjoy from consuming pizza slices. Answer: The total CS = $ Question 19 1 pts Suppose the price = $5 per slice. Find the number of pizza slices that Bob will buy. Quiz saved at 11:00am Submit Quiz