ECON 110 ZIRLOTT TEST 2
When a tax is placed on a market for a good, producer surplus then
becomes the area: - ANSWERS-above the supply curve and below the
price the seller receives
A tax on sellers of coffee will - ANSWERS-increase the price paid by
consumers, decrease the price received by sellers, and reduce the eq'm
quantity of coffee
We can say that the allocation of resources is efficient when -
ANSWERS-the goods go to the consumers who value them most
highly and the goods are produced by the sellers with the lowest cost
(P1 &P2 Graph) According to the graph of the demand curve above, if
price shifts from P1 to P2, the decrease in consumer surplus due to
just buyers leaving the market and not purchasing this product is
represented by: - ANSWERS-The area of triangle C
(P1 & P2 Graph) According to the demand curve graph above, if P1 is
$5 and and P2 is $6.50 and Q1 is 300 and Q2 is 250, the decrease in
CS is just the remaining buyers in the market caused by a increase in
price from P1-P2 is equal to: - ANSWERS-$375
If the gross price elasticity of two goods is negative, then those two
goods are - ANSWERS-supplements
, Thomas says that he will buy one cup of Starbucks coffee every day
regardless of price. If Thomas is telling the truth, then the: -
ANSWERS-elasticity of demand for Starbucks coffee is 0
Dave is willing to pay $7 for a Big Mac meal, Greg is willing to pay
$6.50 for a Big Mac meal, and Austin is willing to pay $5 for a Big
Mac meal at McDonalds but the restaurant is currently selling the Big
Mac meal for $5.50. If the price is $5.50 for the Big Mac meal, their
consumer surpluses would be - ANSWERS-$1.50 for Dave; $1 for
Greg; and $0 for Austin
You work for Six Flags Over Georgia, You need to increase the
revenue generated by the theme park in order to meet expenses. The
general manager of the park advises you to decrease the price of a
ticket. The owner of the park advises you to increase the price of a
ticket. Based orfthis information, you realize that - ANSWERS-the
manager believes the demand for a ticket is elastic and the consumer
believes the demand for a ticket is inelastic
When the percentage change in quantity supplied equals the
percentage change in quantity change in price then - ANSWERS-the
elasticity will be equal to 1
The income elasticity for an inferior good will be - ANSWERS-less
than 0 (negative)
If a consumer is willing to pay $15 for a particular good and the price
of the good is $17, then - ANSWERS-the consumer does not buy the
good
When a tax is placed on a market for a good, producer surplus then
becomes the area: - ANSWERS-above the supply curve and below the
price the seller receives
A tax on sellers of coffee will - ANSWERS-increase the price paid by
consumers, decrease the price received by sellers, and reduce the eq'm
quantity of coffee
We can say that the allocation of resources is efficient when -
ANSWERS-the goods go to the consumers who value them most
highly and the goods are produced by the sellers with the lowest cost
(P1 &P2 Graph) According to the graph of the demand curve above, if
price shifts from P1 to P2, the decrease in consumer surplus due to
just buyers leaving the market and not purchasing this product is
represented by: - ANSWERS-The area of triangle C
(P1 & P2 Graph) According to the demand curve graph above, if P1 is
$5 and and P2 is $6.50 and Q1 is 300 and Q2 is 250, the decrease in
CS is just the remaining buyers in the market caused by a increase in
price from P1-P2 is equal to: - ANSWERS-$375
If the gross price elasticity of two goods is negative, then those two
goods are - ANSWERS-supplements
, Thomas says that he will buy one cup of Starbucks coffee every day
regardless of price. If Thomas is telling the truth, then the: -
ANSWERS-elasticity of demand for Starbucks coffee is 0
Dave is willing to pay $7 for a Big Mac meal, Greg is willing to pay
$6.50 for a Big Mac meal, and Austin is willing to pay $5 for a Big
Mac meal at McDonalds but the restaurant is currently selling the Big
Mac meal for $5.50. If the price is $5.50 for the Big Mac meal, their
consumer surpluses would be - ANSWERS-$1.50 for Dave; $1 for
Greg; and $0 for Austin
You work for Six Flags Over Georgia, You need to increase the
revenue generated by the theme park in order to meet expenses. The
general manager of the park advises you to decrease the price of a
ticket. The owner of the park advises you to increase the price of a
ticket. Based orfthis information, you realize that - ANSWERS-the
manager believes the demand for a ticket is elastic and the consumer
believes the demand for a ticket is inelastic
When the percentage change in quantity supplied equals the
percentage change in quantity change in price then - ANSWERS-the
elasticity will be equal to 1
The income elasticity for an inferior good will be - ANSWERS-less
than 0 (negative)
If a consumer is willing to pay $15 for a particular good and the price
of the good is $17, then - ANSWERS-the consumer does not buy the
good
