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The deadweight loss in the case of perfectly elastic supply curve is

Total producer surplus after the quota is imposed is

MicMac 5

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Task 5

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Questions 10

Answers

1
Total producer surplus after the quota is imposed is
area b+c+d
area d
area c+d+f
area c+d
2
The deadweight loss in the case of perfectly elastic supply curve is
area AFB
area BCD
area ABDE
area FEBD
3
The total deadweight loss in this case is equal to
$500
$750
$250
$375
4
Which statement is true about the given graph?
At price of $25, CS is area abj and PS is area c
At price of $25, CS = area abde and PS = area c
At price of $40, CS is area abc and PS is area j
At price of $30, CS is area f and PS is area g
5
Which is true about welfare effects of a tax?
Producers receive Pt
Consumers pay Pt-t
Government gets area E+F
Government gets area B+C
6
The tax in case of a perfectly elastic supply curve is shouldered
entirely by producers
entirely by consumers
more by consumers than producers
equally by both consumers and producers
7
The total effect of introducing a minimum wage is
unemployment of 3,000 workers
employment of 7,000 workers
employment of 4,000 workers
unemployment of 7,000 workers
8
The total deadweight loss to society is equal to
$12,000
$0
$6,000
$24,000
9
The deadweight oss to firms who demand labor is
$12,000
$20,000
$6,000
$16,000
10
The total loss in consumer surplus after the quota is
area a+b+e
area a
area b+e
area a+b