Question 16 (1 point)

During the Toronto Film Festival, Pizza Pizza decreases its prices from $2.00 per slice to $1.50 per slice. Andy would choose to have 3 slices of pizza if the price was $2.00 per slice, and he would also choose to have 3 slices if the price was reduced to $1.50 per slice.

Which of the following statements is TRUE?

Question 16 options:

	Andy's marginal benefit from the third slice does not change with the price of the slice
	Andy's marginal benefit from a fourth slice is less than $1.50
	Andy's marginal cost for a fourth slice has decreased due to the price drop
	All of the above

Question 17 (1 point)

Which of the following objectives can be achieved my imposing an excise tax?

Question 17 options:

	Increasing producer surplus
	Increasing consumer surplus
	Decreasing the quantity transacted
	Increasing total surplus

Question 18 (1 point)

Which of the following statements is TRUE?

An excise tax imposed on the producers of a good:

Question 18 options:

	Does not change the price paid by consumers
	Generates the same tax revenue as as excise tax imposed on consumers
	Generates a lower deadweight loss than an excise tax imposed on consumers
	Only affects producer surplus and does not affect consumer surplus

Question 19 (1 point)

The market for jeans is in equilibrium with price at $36 and quantity at 6500. The government introduces a $1 per unit tax on

jeans buyers. This causes equilibrium quantity to decrease to 6100. What is the deadweight loss?

Question 19 options:

	300
	200
	100
	400

Question 20 (1 point)

Which of the following is true at minimum total cost output?

Question 20 options:

	Average total cost is higher than marginal cost
	Average variable cost is equal to marginal cost
	Average variable cost is higher than marginal cost
	Average total cost is equal to marginal cost