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Exam 1 Review

Quiz by Braziel Hatch

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10 questions
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  • Q1

    An increase to a binding price ceiling would result in

    Quantity supplied increasing

    Supply Increasing

    Demand increasing

    Quantity demanded increasing

  • Q2

    Which of the following would shift the demand curve for gasoline to the right?

    An increase in the consumer income, assuming gasoline is a normal good

    A decrease in the price of the gasoline

    A decrease in the expected future price of gasoline

    An increase in the price of cars, a complement of gasoline

  • Q3

    The price of a good rises from $12 to $14, and the quantity demanded falls from 200 to 160 units. Calculated with the midpoint method, the absolute value of the elasticity is





  • Q4

    How much is the Consumer Surplus?

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  • Q5

    How much is the Total Surplus?

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  • Q6

    Before the tax was implemented, how much consumer surplus was there?

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  • Q7

    How much of the tax is paid by the consumer?

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  • Q8

    What is the government revenue from taxation in this market?

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  • Q9

    What is the Deadweight Loss due to taxation in this market?

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  • Q10

    What is the loss in Producer Surplus due to the taxation in this market?

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