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ECON-3030-A1/A2/B1/B2-Managerial Economics-Winter-2025

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Refer to the demand and supply equations to answer the following questions.

Market demand is given as QD = 200 – 3P.

Market supply is given as QS = 2P + 100.

1) If the government imposes a binding price floor of

$28.00

in this market, what is the result?

    a. There will be a of units.

    b. The redistribution of surplus from consumers to the producer is equal to $

.

    c. The loss of producer surplus is equal to $

.

2) If the government imposes a binding price ceiling of $14.00 in this market, what is the result?

    a. There will be a of

units.

    b. The highest price that would be charged in a black market is $ .

    c. The deadweight loss due to price ceiling is equal to $ .

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Refer to the figure to answer the following three

question.

In which market(s) will the majority of a tax be paid by the buyer?

In which market(s) will the majority of a tax be paid by the seller?

In which market(s) will the tax be most equally divided between the buyer and the seller?

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Refer to the figure to answer the following 8

questions.

1) The price buyers pay after the tax is imposed is $

.

2) The price sellers receive after the tax is imposed is $

.

3) The amount of the tax per unit imposed in this market is $

.

4) The share of the tax burden per unit that buyers would pay is $

.

5) The share of the tax burden per unit that sellers would pay is $

.

6) The total tax amount collected by the government is $

.

7) The loss of consumer surplus is $

.

8) The loss of producer surplus is $ .
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Refer to the figure to answer the following two questions.

1) If the government imposes a binding price floor of $175.00

in this market, what is the result?

    a. There will be a of units.

    b. The redistribution of surplus from consumers to the producer is equal to $

.

    c. The deadweight loss due to price floor is $ .

2) If the government imposes a binding price ceiling of $50.00 in this market, what is the result?

    a. There will be a of

units.

    b. The highest price that would be charged in a black market is $ .

    c. The deadweight loss due to price ceiling is $ .

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A tax of $0.50 per litre of gasoline placed on the suppliers of gasoline, would shift the supply curve
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What methods are available to raise revenue by levels of governments?
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Unlike minimum-wage laws, what do wage subsidies do?
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What effect will a tax on sellers of jewellery have on the price the buyers pay and the effective price the sellers receive?
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MATCHING DEFINITION

The price sellers receive which also equals the

sellers’ minimum supply-price.

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MATCHING DEFINITION

The state of not achieving maximum productivity;

failure to make the best use of time or resources.

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