1. Most Taxes a. Are paid partly by producers and partly by consumers b. Must be

Question

1. Most Taxes

a. Are paid partly by producers and partly by consumers

b. Must be collected from buyers in order to get buyers to pay their share

c. All options are correct

d. Increase the quantity sold in the market

2. Choose the one event that will result in a decrease in quantity supplied.

a. Supply decreases

b. Demand increases

c. Demand decreases

d. Supply increases

3. When the price a consumer pays for a good is less than the preice they are willing and able to pay for a good, the consumer experiences.

a. A decrease in sonsumer surplus

b. A decrease in producer surplus

c. An increase in producer surplus

d. An increase in consumer surplus

4. Given the graph below, where deman shifts from D1 to D2, which of the following best explains the situation?

a. The equilibrium price and quantity decrese

b. The equilibrium price increases wile equilibrium quantity decreases

c. The equilibrium price decrease wile equilibrium quantity increases

d. The equilibrium price and quantity increase

5. For a price floor to be binding, which of the following must be true?

a. A price floor will always be binding.

b. The price floor price is below the equilibrium price

c. The price floor price is above the equilibrium price

d. The price floor price is at the equilibrium price.

Explanation / Answer

1. Most Taxes a. Are paid partly by producers and partly by consumers 2. Choose the one event that will result in a decrease in quantity supplied. d. Supply increases 3. When the price a consumer pays for a good is less than the preice they are willing and able to pay for a good, the consumer experiences. a. A decrease in sonsumer surplus 4. Given the graph below, where deman shifts from D1 to D2, which of the following best explains the situation? a. The equilibrium price and quantity decrese 5. For a price floor to be binding, which of the following must be true? b. The price floor price is below the equilibrium price

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