Question 10 (1 point) Suppose that the supply schedule can be represented by QS = -8 + 3P and the demand schedule can be represented by Q = 100 - 6P. Suppose the government introduces a price floor at $15. What is the equilibrium price and quantity at the price floor? The price is $15, and the quantity is 28. The price is $15, and the quantity is 24. The price is $15, and the quantity is 37. S The price is $15, and the quantity is 10.Question 1 (1 point) Saved Suppose the demand curve is downward sloping and the supply curve is upward sloping. Raising $1 more of tax revenue causes the total cost to society to rise by: Less than $1. More than $1. Exactly $1. O An ambiguous amount; it can be less than $1, more than $1, or exactly $1 depending on the circumstances. Question 2 (1 point) Consider the market for Widgets. Suppose that, in the short run, demand for Widgets is elastic and supply is inelastic. Which of the following statements is most correct? The burden of a tax will fall more heavily on the sellers. A decrease in demand will increase Widget sellers' total revenue. A decrease in supply will increase Widget sellers' total revenue. Widgets are likely to be an essential item.Question 17 (1 point) Which of the following statements is most correct about price ceilings? A price ceiling has the potential to increase producer surplus. O A price ceiling has the potential to decrease consumer surplus. A binding price ceiling always increases consumer surplus. A price ceiling always increases consumer surplus. Question 18 (1 point) Suppose the supply schedule can be represented by QS = -8 + 4P, and the demand schedule can be represented by Q" = 112 - 8P. Suppose the government imposes a $3 tax for every unit. What is the new equilibrium price and quantity? Price that buyers pay is $9, price that sellers receive is $6, and the equilibrium quantity with tax is 48. Price that buyers pay is $10, price that sellers receive is $7, and the equilibrium quantity with tax is 12. Price that buyers pay is $11, price that sellers receive is $8, and the equilibrium quantity with tax is 24. Price that buyers pay is $12, price that sellers receive is $9, and the equilibrium quantity with tax is 36.\fQuestion 11 (1 point) Suppose demand is linear and downward sloping. Suppose that supply is linear and upward sloping. Suppose that there is a $30 per unit tax imposed on the market. Now, suppose that consumer preferences change causing a parallel shift in the demand curve to the right. What happens to the tax revenue and the deadweight loss? Tax revenue increases; deadweight loss decreases. Tax revenue decreases; deadweight loss increases. Tax revenue increases; deadweight loss increases. Tax revenue increases; deadweight loss stays the same.Question 7 (1 point) Suppose a tax is imposed resulting in a price that buyers pay PB and a price that sellers receive PS. Which of the following statements is most correct? A price ceiling or a price floor is not capable of producing a deadweight loss identical to the one caused by the tax. If, instead of the tax, a price floor was imposed at PS, the deadweight loss of the tax and the price floor would be identical. If, instead of the tax, a price floor was imposed at PB, the deadweight loss of the tax and the price floor would be identical. If, instead of the tax, a price ceiling was imposed at PB, the deadweight loss of the tax and the price ceiling would be identical.\fQuestion 5 (1 point) Suppose that Widgets and Trinkets have the same demand curves and the exact same equilibrium prices and equilibrium quantities. However, suppose that the supply curve for Widgets is elastic, while the supply curve for Trinkets is inelastic. Suppose the government wants to raise revenue by imposing a tax on either Widgets or Trinkets. Which of the following is most correct? Imposing a $1 tax on Widgets will raise more tax revenue than imposing a $1 tax on Trinkets. O If a $1 tax is imposed on both Widgets and Trinkets, the Trinket market will have a higher deadweight loss than the Widget market. If a $1 tax is imposed on both Widgets and Trinkets, the new, post-tax equilibrium quantity of Trinkets will be greater than the new, post-tax equilibrium quantity of Widgets. If a $1 tax is imposed on both Widgets and Trinkets, the burden of the tax will fall more heavily on the consumers of Trinkets than on consumers of Widgets.Question 12 (1 point) After work, Chloe has a habit of picking up ready-to-eat meals from Ferguson's Bar at $30/meal. Suppose the government imposes a $15 tax per meal, which causes Ferguson to increase his price to $45/meal. Chloe continues to pick up meals at the higher price. What is the change in consumer surplus, producer surplus, and deadweight loss? O-$15, $0, $0 O-$15, +$15, $0 -$15, +$15, -$15 O-$15, $0, -$15Question 15 (1 point) Tom pays $800 for a gym membership per year. When the gym lowers its membership fee to $600, Cindy decides to join the gym as well. How much does consumer surplus rise as a result of the price decrease? Between $200 and $400 Less than $200 Between $400 and $600 More than $600 Question 16 (1 point) Suppose the supply curve is upward sloping. When the price is $5, the quantity supplied is 200 units. If the price falls to $4, what happens to producer surplus? It falls by less than $200. It falls by more than $200. It rises by less than $200. It rises by more than $200.Question 19 (1 point) Which of the following would decrease quantity supplied, increase quantity demanded, and decrease the price that consumers pay? The introduction of a tax. The removal of a binding price floor. The removal of a tax. The introduction of a binding price floor. Question 20 (1 point) Suppose the city of Toronto imposes a binding rent control (a binding price ceiling on apartment rents). Which of the following is most likely to be true? The apartment surplus will be relatively large in the short run but small in the long run. The apartment surplus will be relatively small in the short run but large in the long run. The apartment shortage will be relatively small in the short run but large in the long run. O The apartment shortage will be relatively large in the short run but small in the long run.Question 6 (1 point) Suppose the demand curve for gasoline is linear and downward sloping. Suppose that the supply curve for gasoline is linear and upward sloping. If the tax on gasoline were to increase from $0.10 to $0.20 per litre, what happens to the tax revenue? It increases by more than 100%. It increases by exactly 100%. The answer depends on the relative elasticities of supply and demand. It increases by less than 100% and may even decline.Question 3 (1 point) Suppose the supply schedule can be represented by QS = -16 + 4P. Suppose the demand schedule can be represented by Q = 50 - 2P. Suppose the government imposes a price ceiling at $10. What is the consumer surplus at the price ceiling? $216 $192 $188 $168 Question 4 (1 point) Suppose the demand schedule can be represented by the equation Q = 800 - 150P and the supply schedule can be represented by the equation QS = 700 + 350P. What is the equilibrium price and quantity? OP = $0.2, Q = 770 OP = $0.5, Q = 725 OP= $3, Q = 1250 OP= $0.25, Q = 662.5Question 13 (1 point) Suppose demand is downward sloping and supply is upward sloping. Which of the following statements is most correct? The government can always increase tax revenue by increasing the per unit tax. A decrease in supply always makes sellers worse off. Opening a market to trade increases total surplus, thereby improving the welfare of both producers and consumers. A tax will always produce a deadweight loss but a price ceiling will not always produce a deadweight loss. Question 14 (1 point) Suppose the demand curve for gasoline is linear and downward sloping. Suppose that the supply curve for gasoline is linear and upward sloping. If the tax on gasoline were to increase from $0.10 to $0.20 per litre, what happens to the deadweight loss of the tax? It increases by more than 100%. It increases by exactly 100%. It increases by less than 100% and may even decline. The answer depends on the relative elasticities of supply and demand.Question 9 (1 point) Suppose the government decides to impose a price floor at PB. Based on the diagram below, identify the areas that constitute producer surplus (PS), consumer surplus (CS), and deadweight loss (DWL). Price of Pizza Supply A PB - - - B P1 - m D PS - DemandQuestion 8 (1 point) Suppose the market for Widgets had an equilibrium without tax at Q* = 5.00, P* = 30. Suppose the government decides to introduce a tax on Widgets. The new equilibrium quantity with the tax is Q* = 450. The price that buyers pay with the tax is PB = 33, and the price that sellers receive with the tax is PS = 29. What is the deadweight loss resulting from the tax? $50 $200 $150 $100