The figure shows a market. If the government were to institute a price ceiling of 6 in the market, what would be the amount of the resulting shortage? $ S 10 i s ) el . 4 L foeennsanncactoneen TS D 60 90 150 230 270 Typed numeric answer will be automatically saved. What would be the effects of a ban on smoking in public spaces on the market for cigarettes? In the figure, let EO be the initial equilibrium, corresponding to equilibrium price PO and equilibrium gquantity Q0. Point your mouse and click on the new equilibrium intersection of supply and demand. To clarify, click the new intersection of supply and demand - that is, click where the curves cross, not the axis! Q Quantity (O Targets placed: 0/1 You can place up to 1 targets If the market is described by the given Demand curve, and Supply curve S3, what is total market surplus? 18 Price 16 14 12 S4 10 S3 8 S2 6 S1 2 Demand 0 2 4 6 Quantit 8 10 12 14 16 18 20The diagram below depicts the tradeoff faced in production of Factories (Manufactured Goods) and Farms in the country of Latveria. Which of the following points, given the picture, is NOT an efficient combination of Factories and Farms produced? 16 14 12 (23, 11) 10 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a | (23,11) b (32,0 (20,14) d (25,10) The demand curve for a good is derived from the: Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a Marginal cost of the good. b Marginal benefit of the good. Marginal benefits of the good minus marginal costs of the good. d Production Possibilities Frontier Philosophers draw a distinction between , which describe the world as it is, and normative statements, which describe how the world should be. Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a negative statements b positive statements c tradeoffs d utilitarianism If a $6 per unit tax is introduced in this market, then the new equilibrium quantity will be: 10 20 30 40 50 60 70 80 90 Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a 20 units. b 40 units. c 60 units. d None of the above. If the price of this good is $20, what will consumer surplus equal? 40 30 20 10 -.......5.... . .. D Q 5 10 15 20 Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a $100. b $200. C $300 d $400.Which of the following is NOT a determinant of the demand for good X? Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a The cost of labor used to produce good X. b The price of good X. C The income of consumers who buy good X. d The price of good Y, which is a substitute for good X.Consider the diagram below. Suppose that the market is initially described by the Demand curve and supply curve S1. If the government were to enact a $4 tax on the product, which curve would best represent the resulting supply curve, and what would be the new equilibrium quantity exchanged in the market? 18 APrice 16 14 12 S4 S3 S2 Quantji 0 2 4 6 8 10 12 14 16 18 20 Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a S3,75 b $3,6 S2,75 d 52,6 e None of the above All else equal, a decrease in the costs of producing a good will result in: Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a A lower equilibrium quantity and a higher equilibrium price. b A lower equilibrium quantity and a lower equilibrium price. c A higher equilibrium quantity and a higher equilibrium price. d A higher equilibrium quantity and a lower equilibrium price.If supply is S2, which area represents MARKET surplus? Q4 Q2 Q Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. b a+b. C atb+e. d We need to know price in order to determine market surplus. Consider the supply and demand curve diagram. If the price of this good is $6, then: S 10 6 4 D -.. 60 90 150 230 270 Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a There is an excess demand (a shortage) equal to 210 units. b There is an excess demand (a shortage) equal to 140 units. C There is an excess supply (a surplus) equal to 210 units. d There is an excess supply (a surplus) equal to 140 units.Consider the introduction of a $20 per unit tax in this market. Which areas represent the deadweight loss associated with this tax? D S 25 K 15 g 5 Q Q2 Q1 Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a f+ g. b k - g. c j -f. d k+f+j+g.The diagram below depicts the tradeoff faced in production of Factories (Manufactured Goods) and Farms in the country of Latveria. Suppose that Latveria currently has 25 Farms and 10 Factories. What is the opportunity cost of creating another Factory at this point? 24 20 18 18 14 12 (23, 11) 10 0 2 4 6 8 10 12 14 1 18 20 22 24 26 28 0 32 34 Typed numeric answer will be automatically saved. 0000000000 ] If the price of this good is $60, what will consumer surplus equal? Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a S$50. b $100. C $150. d $200. Consider the introduction of a $20 per unit tax in this market. Which areas represent the loss to consumer AND producer surplus as a result of this tax? Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a k+f b j+g k+j. d k+f+j+g Consider the diagram. Which of the following statements are false? m A Wine C G D Bread Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a The opportunity cost of producing more Bread are lower at point C than at point A. b At point F, the economy is producing inefficiently. C At point C the opportunity costs of producing more bread are greatr than at point A. d Point E is an unattainable production point.Consider the market supply curve below, representing the price of oil. The impact on supply of an increase in the price of oil would best be captured by a movement from point __ on the diagram to point _on the diagram. 52 50 S1 B E Price Quantity Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a E to A b A to D C C to A d B to EAt Point A ion this production possibilities graph, the economy: Production possibilities curve Clothing 4 Food Figure 2-2 Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a is not using its resources efficiently. b is using its resources efficiently while producing clothing but no food. c is using its resources efficiently while producing food but no clothing. d is using its resources efficiently to produce both food and clothing.Consider the supply and demand diagram below. If supply decreases from S1 to S2, which area represents the change in PRODUCER surplus? Q2 Q4 Q Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a b+c-f In order for quantity supplied to equal 6 units, the price per unit must be: Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a S b $2. c $3. If the price of this good is $4 per unit, then what does producer surplus equal? Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a $32. b $24. c Sl6. d $12. Consider the diagram, which illustrates the market for low-skilled labour. Suppose that the equilibrium quantity is reduced from Q1 to Q2 units, through the introduction of a price floor - a minimum wage - of $10. Which of the following correctly describes the resulting decrease in MARKET surplus? Q: Q Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a Market surplus will decrease by a - c. b Market surplus will decrease by by e +c. Market surplus will decreasebya+b+e+c. d Market surplus will decrease by b - e. Consider the diagram. If consumers consume 5 units at a price of 30, what is consumer surplus? 40 30 20 10 -.......5. D Q 5 10 15 20 Typed numeric answer will be automatically saved.Suppose that in the market for good X (a normal good), the following occur simultaneously: (i) consumer incomes increase and (ii) the price of oil (an input to the production of X) increases. Which of the following statements is TRUE? Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a The equilibrium price of X could either increase or decrease, but equilibrium quantity will definitely decrease. b The equilibrium quantity of X could either increase or decrease, but equilibrium price will definitely decrease. C The equilibrium price of X could either increase or decrease, but equilibrium quantity will definitely increase. d The equilibrium quantity of X could either increase or decrease, but equilibrium price will definitely increase.A recent Health Canada report argued that there is a strong link between the consumption of steak and heart disease. At the same time, Canadian consumers' incomes rose. If steak is a normal good, what are the combined effects in the market for steak? Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a An increase in the equilibrium price and the quantity. b An increase in the equilibrium price and an unpredictable change in the equilibrium quantity. C An unpredictable change in both the equilibrium price and the quantity. d An unpredictable change in the equilibrium price and a decrease in the equilibrium quantity.Suppose the price of good X increases. If X and Y are substitutes, then, in the market for good Y, we would expect: Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a An increase in both the equilibrium price and quantity. b A decrease in the equilibrium price and an increase in the equilibrium quantity. C An increase in the equilibrium price and a decrease in the equilibrium quantity. d A decrease in both the equilibrium price and quantity.Consider the diagram. Which of the following statements about the PPF are true? m Wine C G Bread Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a E is an inefficient production point. b A, B, C and D are all efficient production points. C F and G are both unattainable production points. d A and D are inefficient. e All of the above are true.Consider the diagram, which depicts the market for Oranges. Suppose that consumer incomes decrease and that Oranges are a normal good. Which movement between labelled points best describes the impact on the market? B Price E D C Do Quantity Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a A to B b E to A C C to D d A to EFill in the Blanks Q Answers typed in all of the blanks will be automatically saved. Xa XE Q i Consider the diagram. Suppose the price is 20. At this point | write your response here... units of the good are purchased, and total consumer expenditures on the product are Write your response here... : The diagram depicts the market for home fuel oil, which is used to heat homes and buildings. If winter were unusually warm, we might expect that a movement in demand best characterized by a movement from might occur as a result of the warm winter. Price D C D1 Do Quantity Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a A to B b A to D C C to A d A to E