QUESTION 9 The following graph of long run changes In a competitive market indicate that i is exhibiting Price(S) 10 9 DA 1 2 3 4 5 6 8 9 10 0 Quantity External diseconomies of scale Neither economics nor discconomles of scale The law of Increasing marginal returns Constant returns to scale Internal diseconomies of scale of the firms Internal economies of scale of the firmsQUESTION 10 The graph below shows a perfectly competitive market for rice In which the government has required producers meet the supply-quota of 6 million tonnes of rice. What is the size of the deadweight loss of economicwelfare? Price( 5) 10 MSC 9 Ln MSB 1 2 3 4 5 6 B 9 10 Quantity [millions) $12 million 28 million $18 million $16 million $24 million ) $4 millionQUESTION 11 Given the graph below, what is the most accurate statement to make about this market for some unspecified good. Price($) MSC+Tax imposed 10 MSC 9 Ln HNWA MSB 0 1 2 3 4 5 6 7 B 9 10 Quantity [millions) Total economic welfare Is being maximised at the new equilibrium price and quantity A black market is likely to emerge, resulting in economic welfare in society being maximised despite the government's decision There will be a deadweight loss of economic welfare experienced In the society as a whole It Is Impossible to say what the overall welfare Impact will be on society because It depends on how the government subsequently distributes the revenue obtained The government's action will result In a shortage in the market and a loss of economic welfare Consumers will lose economic welfare but suppliers will gain economic because consumers will have to pay higher prices to suppliersQUESTION 12 Assuming the laws of demand and supply apply, which of the following scenarios would move the equilibrium from point a to point & In the market for age-care nursing home services In Australia? Price($) 10 9 B 1 2 3 4 5 6 9 10 Quantity [millions) A decrease In the wages paid to age-care nurses and an Increase in the number of people migrating to Australia who are over 80 years old An Increase In the number of people over 80 years old and the withdrawal of government subsidies to private nursing home providers An Increase In government subsidies paid to private nursing home providers An Increase In the cost of living to households who are caring for elderly grandparents at home A substantial Increase In buyers' Income and an Increase In land prices on which nursing homes would be built An Increase In doctors' fees and an Increase In the number of government owned and-run nursing homesYou are thinking about buying roses for your beloved. The market price is $10 perrose. The graph below shows (1) the prices you would be willing to pay for each additional rose if you were purchasing roses for yourself (solid blue columns], and (Ill the marginal benefit of the warm fuzzy feeling' you get from giving roses to your QUESTION 13 beloved (solid red columns). Iif you were a rational selfinterested decision maker, how many roses would you purchase for your beloved? $9 $8 $7 $6 $5 $4 $3 $2 $1 5 SO 3 1 2 Quantity of roses Do O OI