Questions 13 through 22 are related.

13. The Demand Curve for a package of tofu based vegetarian hamburgers is given by the equation QD = 18.7 - 2.75P with quantity measured in billions of packages per year and price measured in dollars per package. The Supply Curve is estimated by the equation QS = -1.9 + 3.35P. The equilibrium price and quantity of packages are:

a. $1.22 and 15.35 billion.

b. $1.76 and 13.85 billion.

1. $3.07 and 8.38 billion.
2. $3.38 and 9.41 billion.
3. $6.80 and 20.88 billion.

14. Using the information in question 13, at the equilibrium price and quantity, the amount consumers spend on the product and the industry's revenue are respectively:

1. $18.73 billion.
2. $24.37 billion.
3. $25.73 billion.
4. $31.79 billion.
5. $141.98 billion.

15. Using the information in question 13, at the equilibrium price and quantity, the Consumers' Surplus and Producers' Surplus are respectively:

a. $2.13 billion and $1.75 billion.

b. $6.14 billion and $5.76 billion.

c. $13.19 billion and $10.49 billion.

d. $16.11 billion and $13.22 billion.

e. $18.14 billion and $14.87 billion.

16. Assume that a $0.40 subsidy is given to Consumers/Demanders to encourage healthy diets. With the subsidy, the quantity demanded and supplied in the market will be, respectively:

a. 8.92 billion and 8.92 billion.

b. 8.92 billion and 10.02 billion.

c. 10.02 billion and 10.75 billion.

d. 10.51 billion and 9.41 billion.

e. 10.02 billion and 10.02 billion.

17. After the $0.40 subsidy for Consumers is granted, the Price Consumers pay and the Price Producers receive will be, respectively:

a. $2.98 and $3.38.

b. $3.16 and $3.56.

c. $3.38 and $3.78.

d. $3.47 and $3.87.

e. $3.56 and $3.16.

18. After the $0.40 subsidy for Consumers is granted and the market settles into equilibrium, the amount consumers spend on the product and the industry's revenue are:

a. $26.58 and $30.15 billion.

b. $28.19 and $31.76 billion.

c. $36.34 and $40.64 billion.

d. $31.66 and $35.67 billion.

e. $35.67 and $31.66 billion.

19. After the $0.40 subsidy for Consumers is granted, Consumers' Surplus will be:

a. $2.07 billion.

b. $2.13 billion.

c. $6.14 billion.

d. $16.11 billion.

e. $18.24 billion.

20. After the $0.40 subsidy for Consumers is granted, Producers' Surplus or Industry Profits will be:

a. $1.70 billion.

b. $1.75 billion.

c. $5.76 billion.

d. $13.22 billion.

e. $14.98 billion.

21. After the $0.40 subsidy for Consumers is granted, Government Expense will be:

a. $0.12 billion.

b. $2.73 billion.

c. $3.77 billion.

d. $3.89 billion.

e. $4.01 billion.

22. After the $0.40 subsidy for Consumers is granted, the Deadweight or Welfare Loss to the economy will be:

a. $0.07 billion.

b. $0.12 billion.

c. $0.55 billion.

d. $1.70 billion.

e. $2.07 billion.