A subsidy is the opposite of a tax, but it has precisely the same impact on a market, namely, it blank A. decreases the amount buyers purchase B. decreases the amount sellers sell C. creates a deadweight loss D. creates a level of consumption more efficient than a perfectly competitive market
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A subsidy is the opposite of a tax, but it has precisely the same impact on a market, namely, it blank
A. decreases the amount buyers purchase
B. decreases the amount sellers sell
C. creates a
D. creates a level of consumption more efficient than a
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- The subsidy is more beneficial to consumers when a. The demand curve more elastic b. The demand curve is more inelastic C. The supply curve is more elasticWhen a price ceiling is imposed on a competitive market at a level above the equilibrium price: a. the consumer surplus is reduced. producers lose some or all of the producer surplus. the total surplus is not changed by the price ceiling. both the producers and consumers lose surplus.Which of the following will make an extension of supply? a. Rise in price b. Rise in subsidy c. Fall in subsidy d. Fall in price
- Price (dollars per tire) S + tax 70 60 50 40 D 30 20 10 10 20 30 40 50 60 70 Quantity (millions of tires per month) The figure above shows the market for tires. The government has imposed a tax on of the tax. tires, and the buyers pay A) $50 B) $60 C) $20 D) $10Only solve d and e (d)Calculate the deadweight loss from this subsidy. (e) Will the government’s subsidy meet its objective?K The graph shows the market for college education. To encourage the efficient number of students to enroll colleges receive a subsidy Draw the new supply curve following introduction of the subsidy. Label it A subsidy is a payment that to cover part of the costs of education. OA. colleges make to students OB B. students make to the colleges OC. the government makes to colleges OD. students make to the teachers 60 50- 40- 30- 20 10- 0 of 0 Price and cost (thousands of dollars per student per ye Q SMC MSB D-MB 2 4 6 8 10 Quantity (thousands of students per year) >>> Draw only the objects specified in the question 12
- Discuss the effect of elasticity of demand on consumer and producer surplus and give examples.Price Таx Amount of the tax C. Quantity Click to view larger image. Look at the provided figure. What area(s) represent producer surplus after the tax? OF OD E + F D + CIf the government passes a law requiring sellers of motorcycles to send $500 as tax to the government for every motorcycle they sell, then a. the supply curve for motorcycles shifts downward by $500 b. sellers of motorcycles receive $500 less per motorcycle than they were receiving before the tax c. buyers of motorcycles are unaffected by the tax d. all of the above are correct e. none of the above are correct
- The graph shows the supply curve of smart watches and the market price of a smart watch. Draw the producer surplus from smart watches. Label it. What is producer surplus? Producer surplus is OA. equal to the value that the seller places on the good, summed over the quantity sold OB. received by a producer when price exceeds the marginal cost of production OC. the value of the good minus its marginal cost, summed over the quantity sold D. the marginal benefit received by a producer, summed over all the units sold 500+ 400- 300- 200- 100+ 0- Price (dollars per smart watch) S-MG 0 Market price 1 4 5 6 2 3 Quantity (millions of smart watches per year) >>> Draw only the objects specified in the question. Q 7Macmillan Learning Consider the following supply and demand diagram. In this market, the government subsidizes the production of this good, and the subsidy wedge is indicated. Price $10 9 co 7 6 5 4 3 2 1 0 Demand 10 20 30 40 50 Supply Subsidy 60 70 80 90 100 Quantity a. Without the subsidy, what are the total gains from trade?7.04 Review Suppose a tax of $20 is placed on televisions. If this market's supply and demand curves' are elastic, the burden of this tax falls on: Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a the sellers b the buyers both the sellers and the buyers.