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1. If S and D are the initial supply and demand curves, after the tax represented by S', is
imposed, the equilibrium price is the distance
A) 0M.
B) 0E.
C) 0A.
D) 0G.
E) GE.
2. If S and D are the initial supply and demand curves, after the tax represented by S', is
imposed, the equilibrium quantity is the distance
A) FB.
B) 0B.
C) 0F.
D) 0F + 0B.
E) 0F - FB.
Page 1
3.
A)
B)
C)
D)
E)
P r ic e
( $ /lb )
16
14
12
10
8
6
4
2
D
0
10
15
20
25
30
35
40
45
Q
( lb s /d a y )
At the price of $4 per lb., sellers offer _____ lbs of shrimp a day.
0
10
20
30
40
5.
A)
B)
C)
D)
E)
The price of $4 per lb. will lead to a _____ of _____ lbs of shrimp per day.
excess supply, 20
excess supply, 30
equilibrium quantity, 20
excess demand, 20
excess demand, 30
Page 2
P
$14
12
S
10
8
6
4
2
D
4
12
16
20
24
6.
A)
B)
C)
D)
E)
Suppose a price ceiling is imposed at $4. The value of the producers surplus is
$24.
$16.
$8.
$4.
$2.
7.
A)
B)
C)
D)
E)
8.
A)
B)
C)
D)
E)
Page 3
Answer Key
1.
2.
3.
4.
5.
6.
7.
8.
B
C
D
B
D
D
C
B
Page 4