Graphs ECON Test PDF

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Summary

Graphs on production and consumption economic surplus...

Description

Use the figure below to answer the following question.

1. If actual production and consumption occur at Q1 and the price is P1? **Consumer surplus equals area a+b 2. If actual production and consumption occur at Q1 and the price is P2, deadweight loss equals area **D. 3. If actual production and consumption occur at Q1 and the price is P2 **producer surplus equals area c+b 4. If actual production and consumption occur at Q2 ** consumer surplus and producer surplus is maximized

5. If the output level is Q1, then deadweight loss is indicated by the area ***BCE

6. If a price ceiling in this market is set at P1, then producer surplus equals area C 7. If a price ceiling in this market is set at P 2, then No deadweight loss occurs 8. If a price ceiling in this market is set at P 1, then consumer surplus equals area A+B 9. If a price ceiling in this market is set at P 1, then deadweight loss equals area D

10. If a price ceiling in this market is set at P 1, then The government does not raise revenue

11. If a price floor in this market is set at P2, then deadweight loss equals area D 12. If a price floor in this market is set at P 2, then Government does not raise revenue 13. If a price ceiling in this market is set at P 1, producer surplus is represented as which area on the graph?

C 14. If a price floor in this market is set at P 1, then No deadweight loss occurs 15. If a price floor in this market is set at P 2, then consumer surplus equals area A

16. What area represents consumer surplus after the government imposes the excise tax on the market? Triangle $21a$13 17. What area represents society's total surplus after the government imposes the excise tax on the market?

Triangle$1c$9+ triangle$21a$13+ rectangle$13ac$9 18. What area represents tax revenue after the government imposes the excise tax on the market?

Square $13ac$9 19. What area represents producer surplus after the government imposes the excise tax on the market?

Triangle $1c$9 20. What area represents deadweight loss after the government imposes the excise tax on the market?

Triangle abc

21. What is the amount of government revenue after the government imposes the excise tax on the market?$144

22. What is the amount of total surplus (for society) after the government imposes the excise tax on the market? $96

23. What is the amount of producer surplus after the government imposes the excise tax on the market?$162 24. What is the amount of consumer surplus after the government imposes the excise tax on the market?$486

25. What is the amount of deadweight loss after the government imposes the excise tax on the market?$4...