Exam prep · Year 1 Concordia style · intro level
9 problems
micro, macro, s
tatistics
Concordia
Year 1 practice Full solutions
every step worked o
ut
Intro micro, intro macro and intro statistics: supply and demand, costs, GDP,
money, probability and tests.
Unofficial practice based on public course descriptions for this level. Not affiliated with or
endorsed by Concordia University.
, Micro · Problems 1 to 3 Concordia · Year 1 style
Markets, elasticities and taxes
Problem 1 Problem 2 Problem 3
Market equilibrium Elasticities A per-unit tax
Demand: Qd = 120 − 2P Same market, at the equilibrium point. The government taxes sellers $5 per unit.
Supply: Qs = 3P − 30
1. Price elasticity of demand? 1. Price paid by buyers and received by
1. Find P* and Q*. 2. Price elasticity of supply? sellers?
2. Compute consumer and producer 3. If the price rises slightly, what 2. Tax revenue and deadweight loss?
surplus. happens to total spending? 3. Who bears more of the tax, and why?
Unofficial practice · Solutions on the next page · Concordia Year 1 style · 02
9 problems
micro, macro, s
tatistics
Concordia
Year 1 practice Full solutions
every step worked o
ut
Intro micro, intro macro and intro statistics: supply and demand, costs, GDP,
money, probability and tests.
Unofficial practice based on public course descriptions for this level. Not affiliated with or
endorsed by Concordia University.
, Micro · Problems 1 to 3 Concordia · Year 1 style
Markets, elasticities and taxes
Problem 1 Problem 2 Problem 3
Market equilibrium Elasticities A per-unit tax
Demand: Qd = 120 − 2P Same market, at the equilibrium point. The government taxes sellers $5 per unit.
Supply: Qs = 3P − 30
1. Price elasticity of demand? 1. Price paid by buyers and received by
1. Find P* and Q*. 2. Price elasticity of supply? sellers?
2. Compute consumer and producer 3. If the price rises slightly, what 2. Tax revenue and deadweight loss?
surplus. happens to total spending? 3. Who bears more of the tax, and why?
Unofficial practice · Solutions on the next page · Concordia Year 1 style · 02
