ECON 201 – Which of the following could not explain the indicated increase

| February 14, 2018

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1.
Which of the following could not
explain the indicated increase in equilibrium price from P1 to P2?
a.
an increase in consumer incomes
b.
an increase in production costs
c.
a decrease in the price of a
complementary product
d.
an increase in the price of a substitute
product

2.
Use the supply and demand
curves depicted in following graph for a competitive market to answer the
question below

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If the
government imposed a price ceiling of $15, then buyers will be intending to buy
___, but they will be able to legally buy ____.
a.
30 units, 24 units
b.
36 units, 24 units
c.
36 units, 30 units
d.
24 units, more than 24 units

3.
Use the following graph for a
competitive market to answer the question below
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Assume the government imposes $2.25 tax on
suppliers, which results in a shift of the supply curve from S1 to S2.
The price the consumer pays for the product after the tax is imposed on the
suppliers is
a.
$1.25
b.
$2,50
c.
$3.50
d.
$2.25

4.
Use the following graph for a
competitive market to answer the question below.

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Assume the government
imposes a $3 tax on buyers, which results in a shift of the demand curve from D1
to D2. The price the seller receives for the product after the
tax is imposed on the buyer is
a.
$8
b.
$7
c.
$5
d.
$3

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5.
If a price floor in this market
is set at P1, then
a.
deadweight loss equals area d.
b.
deadweight loss equals area h.
c.
no deadweight loss occurs.
d.
more information is needed to
find deadweight loss.

6.

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In the graph above, what is the price
elasticity of supply (using the midpoint formula) between points A and B above?
a.
1
b.
3
c.
2
d.
1/3

7.

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For which graph is the
supply perfectly inelastic?
a.
Graph A
b.
Graph B
c.
Graph C
d.
Graph D

8.

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“The bigger the
volume, the lower the cost, and we pass these savings on to you” is a
familiar slogan. Its idea is illustrated in which of the above graphs?
a.
Graph A
b.
Graph B
c.
Graph C
d.
Graph D

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