Deck 3: Using Supply and Demand to Analyze Markets

Question 1

Deadweight loss can be calculated as:

A) , where Q_e and P_e are the equilibrium quantity and price, respectively, and P(Q_D) is the inverse demand curve.
B) , where Q_e and P_e are the equilibrium quantity and price, respectively, and P(Q_S) is the inverse supply curve.
C) , where Q_e is the quantity that would occur in a free-market equilibrium and P(Q_D) and P(Q_S) are inverse demand and supply, respectively.
D) , where Q_a denotes actual quantity, Q_e is the quantity that would occur in a free-market equilibrium, and P(Q_D) and P(Q_S) are inverse demand and supply, respectively.

Answer 1

D

Question 2

(Figure: Market for Tickets II) Before the tax, producers receive the price ____ and after the tax, producers receive the price ____.

A) $5.50; $6.00
B) $5.50; $5.00
C) $6.00; $5.00
D) $5.00; $6.00

Answer 2

B

Question 3

(Figure: Market for Good X II) Before the subsidy, producer surplus is ____ and after the subsidy, producer surplus is ____.

A) $25.00; $16.00
B) $32.00; $50.00
C) $16.00; $25.00
D) $32.00; $30.00

Answer 3

C

Question 4

(Figure: Price and Quantity IV) Suppose the government mandates a price ceiling of $8 per pound. Consumer surplus:

A) increases by $700.
B) increases by $800.
C) increases by $300.
D) decreases by $150.

Question 5

The demand and supply of pickles are given by Q^D = 300 - 500P and Q^S = 400P - 150, where P is the price per pickle and Q measures the quantity of pickles in millions. Suppose the government creates a subsidy of $0.25 per pickle. Which of the following statements are TRUE?
I) Without the subsidy, the equilibrium quantity of pickles is 75 million.
II) With the subsidy, consumers pay 38.9 cents per pickle.
III) With the subsidy, producers receive 75 cents per pickle.
IV) With the subsidy, the equilibrium quantity of pickles is greater than 100 million.

A) II, III, and IV
B) I and III
C) II and IV
D) I, III, and IV

Question 6

(Figure: Market for Tickets II) The size of the tax is:

A) $1.00.
B) $0.50.
C) $4.00.
D) $2.00.

Question 7

(Figure: Market for Tickets II) The government tax revenue is:
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A) B + E.
B) B + C + E + F.
C) E + F.
D) B + C.

Question 8

Consumer surplus can be calculated as:

A) , where Q_e and P_e are the equilibrium quantity and price, respectively, and P(Q_D) is the inverse demand curve.
B) , where Q_e and P_e are the equilibrium quantity and price, respectively, and P(Q_S) is the inverse supply curve.
C) , where Q_e is the quantity that would occur in free-market equilibrium and P(Q_D) and P(Q_S) are inverse demand and supply, respectively.
D) , where Q_a denotes actual quantity, Q_e is the quantity that would occur in free-market equilibrium, and P(Q_D) and P(Q_S) are inverse demand and supply, respectively.

Question 9

If the government subsidizes a product, what is the relationship between the price that buyers pay (P_B) and the price that sellers receive (P_S)?

A) P_B + subsidy = P_S
B) P_B + P_S = subsidy
C) P_B = P_S + subsidy
D) P_B (1 + subsidy) = P_S

Question 10

(Figure: Price and Quantity V) For demand curve D₁, the level of consumer surplus at a price of $40 is:

A) $600.
B) $300.
C) $1200.
D) $10.

Question 11

To calculate producer surplus:

A) integrate the area under the demand curve and above the equilibrium price.
B) integrate the area under the demand curve and above the supply curve.
C) integrate the area under the equilibrium price and above the supply curve.
D) integrate the area under the supply curve.

Question 12

The demand for a good is given by Q^D = 750 - 0.4P. What is consumer surplus at a price of $80?

A) $644,405
B) $57,440
C) $1,875
D) $71,800

Question 13

The market for organic cabbage is represented by Q^D = 1,200 - 75P and Q^S = 425P - 300, where P is the price per head of cabbage and Q measures the number of heads of cabbage per week. Suppose the price of organic fertilizer falls, making sellers willing to sell 100 more heads of cabbage per week at every price. What happens to producer and consumer surplus as a result of this change?

A) Consumer surplus increases by $196.50, and producer surplus increases by $36.97.
B) Consumer surplus increases by $196.50, and producer surplus increases by $42.37.
C) Consumer surplus remains unchanged, but producer surplus increases by $93.02.
D) Consumer surplus increases by $296.50, and producer surplus increases by $36.97.

Question 14

The deadweight loss (owing to a price ceiling) increases as demand becomes more _____ and supply becomes more _____.

A) inelastic; inelastic
B) elastic; inelastic
C) elastic; elastic
D) inelastic; elastic

Question 15

In the market for cotton, the quantity demanded and quantity supplied are expressed mathematically as Q^D = 400 - 250P and Q^S = 250P - 100, where P is the price per pound of cotton and Q measures pounds of cotton. Suppose the government sets a price ceiling of $0.50 per pound of cotton. The consumer surplus with the price ceiling is:

A) $22.
B) $26.25.
C) $28.
D) $1.25.

Question 16

The demand and supply of movie tickets are given by Q^D = 30 - 3P and Q^S = 4P - 19, where P is the price per ticket and Q is in thousands of tickets. If the government places a $1 tax on each ticket, the prices that consumers pay with and without the tax are _____ and _____, respectively.

A) $8; $7
B) $7.57; $7
C) $7.50; $6.50
D) $4.30; $3.80

Question 17

(Figure: Market for Good X II) The total cost of the subsidy for the government is ____.

A) $2.00
B) $10.00
C) $20.00
D) $16.00

Question 18

In the market for cotton, the quantity demanded and quantity supplied are expressed mathematically as Q^D = 400 - 250P and Q^S = 250P - 100, where P is the price per pound of cotton and Q measures pounds of cotton. Suppose the government sets a price ceiling of $0.50 per pound of cotton. The producer surplus with the price ceiling is:

A) $26.25.
B) $12.
C) $6.25.
D) $1.25.

Question 19

At the equilibrium price of $10, the elasticity of demand and supply are -0.9 and 1.10. If the government institutes a tax of $1 per unit, sellers will receive _____ and consumers will pay _____.

A) $9.55; $10.55
B) $10.25; $11.25
C) $9.80; $10.80
D) $9.75; $10.75

Question 20

(Figure: Market for Magazines I) The supply equation in the adult magazine market is given by Q^S = 2P - 4, where P is the price per magazine and Q measures the number of magazines in thousands. Which supply curve reflects a government quota of 6,000 magazines?

A) Panel (a)
B) Panel (b)
C) Panel (c)
D) Panel (d)

Question 21

(Figure: Market for Snow Blowers I) Which of the following statements is (are) TRUE? I. The price sellers receive after tax is $250.
II) With the tax, consumers pay $315 per snow blower.
III) The government collects $200,000 in tax revenue.

A) I and III
B) II and III
C) II
D) I, II, and III

Question 22

In a small country, the demand and supply of kidneys are represented by Q^D = 10,000 - 0.25P and Q^S = 0.5P + 4,000. Which of the following statements is (are) TRUE?
I) The equilibrium price is $8,000.
II) At a price ceiling of $0, there are 4,000 volunteer donors.
III) At a price ceiling of $0, there is an excess demand of 14,000 kidneys.

A) I, II, and III
B) II and III (because the demand curve shifts out, pushing up the price)
C) I and II
D) III

Question 23

(Figure: Market for Good X II) The deadweight loss when providing the subsidy is ____.

A) $2.00
B) $4.00
C) $20.00
D) $16.00

Question 24

(Figure: Market for Asparagus I) Relative to the initial market equilibrium, at a price ceiling of $2, what is the amount of surplus transferred from producers to consumers?

A) $4,000
B) $2,000
C) $1,000
D) $500

Question 25

In the market for cotton, the quantity demanded and quantity supplied are expressed mathematically as Q^D = 400 - 250P and Q^S = 250P - 100, where P is the price per pound of cotton and Q measures pounds of cotton. Suppose the government sets a price ceiling of $0.50 per pound of cotton. As a result of the price ceiling, there is a shortage of:

A) 250 pounds of cotton.
B) 200 pounds of cotton.
C) 150 pounds of cotton.
D) 100 pounds of cotton.

Question 26

(Figure: Market for Comic Books I) The quota at S₂ causes producer surplus to:

A) decrease from $12 to $2.
B) decrease from $8 to $2.
C) increase from $8 to $12.
D) increase from $8 to $10.

Question 27

Suppose that a minimum price (price floor) is legislated. To calculate producer surplus:

A) integrate the area below the price floor and above the supply curve between zero and the free-market equilibrium price.
B) integrate the area below the price floor and above the supply curve between zero and the quantity resulting from the price floor.
C) integrate the area under the demand curve and above the price floor between zero quantity and the quantity resulting from the price floor.
D) integrate the area under the demand curve and above the supply curve between zero quantity and the quantity resulting from the price floor.

Question 28

To calculate deadweight loss:

A) integrate the area between the demand and supply curves over the range of the difference between zero and the free-market equilibrium quantity.
B) integrate the area between the demand and supply curves over the range of the difference between the quantity corresponding to the choke price and the free-market equilibrium quantity.
C) integrate the area between the demand and supply curves over the range of the difference between zero and the actual quantity.
D) integrate the area between the demand and supply curves over the range of the difference between the actual and free-market equilibrium quantities.

Question 29

All else being equal, a negative supply shock:

A) causes consumer surplus to increase and producer surplus to decrease.
B) causes consumer surplus to decrease and producer surplus to increase.
C) causes both consumer and producer surplus to increase.
D) causes both consumer and producer surplus to decrease.

Question 30

In the market for cotton, the quantity demanded and quantity supplied are expressed mathematically as Q^D = 400 - 250P and Q^S = 250P - 100, where P is the price per pound of cotton and Q measures pounds of cotton. Suppose the government sets a price ceiling of $0.50 per pound of cotton. The deadweight loss with the price ceiling is:

A) $26.25.
B) $40.00.
C) $62.50.
D) $1.25.

Question 31

Suppose that a local government has imposed a quota of 0.5 million gallons on water usage. Before the quota is enforced, the market demand curve is given by
Q^D = 10 - 2.25P
And the market supply curve is given by
Q^S = -10 + 2.75P
Where the quantity is measured in millions of gallons per month and the price is in dollars per thousand gallons. After the quota is imposed, the price becomes ____.

A) $4.00
B) $4.22
C) $5.00
D) $5.22

Question 32

Suppose that the demand curve for an advanced technology product for businesses is given by P =10,000 - 4Q³ and supply is P = 2,000 + 4Q³. The consumer surplus at the equilibrium price is ____.

A) $6,000
B) $10
C) $70,000
D) $30,000

Question 33

Suppose the demand and supply curves for units of university credits are given by
Q^D = 5,000 - P
Q^S = -1,000 + 4P
Where Q^D is the quantity of credits demanded, Q^S is the quantity supplied, and P is the price in dollars for each unit. The producer surplus at the equilibrium price is ____.

A) $1,805,000
B) $3,610,000
C) $4,560,000
D) $7,220,000

Question 34

(Figure: Price and Quantity VII) The area that represents the deadweight loss from the change in demand from D₁ to D₂ is:

A) There is no deadweight loss.
B) A + E.
C) B + C.
D) D.

Question 35

(Figure: Market for Ammunition I) Assuming the government implements the quota of 200 boxes/week, the producer surplus is:

A) A + B + E.
B) D.
C) C + D + F.
D) B + C + D.

Question 36

(Figure: Market for Tickets I) Which of the following statements is (are) TRUE? I. Consumer surplus after the tax is area A + B.
II) Producer surplus before the tax is D + E + F.
III) Consumer surplus before the tax is A + C + E.
IV) The size of the tax is $0.50, raising $170,000 in tax revenue.

A) I and II
B) II, III, and IV
C) IV
D) II and IV

Question 37

Producer surplus can be calculated as:

A) , where Q_e and P_e are the equilibrium quantity and price, respectively, and P(Q_D) is the inverse demand curve.
B) , where Q_e and P_e are the equilibrium quantity and price, respectively, and P(Q_S) is the inverse supply curve.
C) , where Q_e is the quantity that would occur in free-market equilibrium and P(Q_D) and P(Q_S) are inverse demand and supply, respectively.
D) , where Q_a denotes actual quantity, Q_e is the quantity that would occur in free-market equilibrium, and P(Q_D) and P(Q_S) are inverse demand and supply, respectively.

Question 38

The demand and supply of ethanol (a renewable fuel from plant materials) are given by Q^D = 8,000 - 2,000P and Q^S = 1,000P - 1,000, where P is price per gallon and Q measures gallons per minute. If the government subsidizes ethanol by $0.30 per gallon, what is the deadweight loss?

A) $30
B) $7,800
C) $440
D) $119

Question 39

(Figure: Market for Enplanements) From the year 2000 to 2001, the demand curve for air travel shifted inward, from D₂₀₀₀ to D₂₀₀₁. In 2000, the equilibrium price and quantity were $122.22 and 148.9 million enplanements, respectively. In 2001, the equilibrium price and quantity fell to $104.82 and 123.6 million enplanements, respectively. The loss in producer surplus attributable to the decrease in demand is equal to area:

A) A.
B) A + B.
C) B + C.
D) B.

Question 40

(Figure: Market for Snow Blowers I) The size of the tax is:

A) $125.
B) $65.
C) $190.
D) $200.

Question 41

(Figure: Price and Quantity VII) The area that represents consumer surplus with the demand curve D₁ is _____, and the area that represents consumer surplus with the demand curve D₂ is ____.

A) B; A + B
B) A + B; B + C
C) B + C; A + B + C + E
D) B + C; A + B

Question 42

To calculate consumer surplus for the case when a quota is in place:

A) integrate the area under the demand curve and above the free-market equilibrium price.
B) integrate the area under the demand curve and above the price determined by the market after the quota is in place.
C) integrate the area above the supply curve and under the price determined by the market after the quota is in place.
D) integrate the area under the demand curve and above the supply curve between zero and the quota quantity.

Question 43

Suppose that the demand curve for brown rice is given by P = 50,000 - 3Q², and supply is P = -10,000 + 3Q². The consumer surplus at the equilibrium price is ____.

A) $1,000,000
B) $200,000
C) $100,000
D) $2,000,000

Question 44

The price elasticity of demand is -1.25, and the share of the tax borne by consumers is 0.80. What is the price elasticity of supply?

A) 6
B) 5
C) 1.56
D) 1

Question 45

Suppose that last year the equilibrium price and the quantity of good X were $10 and 5 million pounds, respectively. Because of strong demand this year, the equilibrium price and the quantity of good X are $12 and 7 million pounds, respectively. Assuming that the supply curve of good X is linear, producer surplus:

A) increased from $25 million to $42 million.
B) increased from $12.5 million to $24.5 million.
C) increased from $3 million to $7 million.
D) increased from $4.2 million to $5.6 million.

Question 46

Nancy paid $55 for car mats but was willing to pay $80. What is Nancy's consumer surplus?

A) $80
B) $15
C) $25
D) $135

Question 47

(Figure: Price and Quantity IV) At a price ceiling of $8, there is a shortage of _____ and a deadweight loss of _____.

A) 200 pounds; $1,200
B) 500 pounds; $400
C) 300 pounds; $600
D) 300 pounds; $300

Question 48

Suppose that the demand curve for an advanced technology product for businesses is given by P =10,000 - 4Q³ and supply is P = 2,000 + 4Q³. The equilibrium price is ____ and the equilibrium quantity is ____.

A) $6,000: 10
B) $10; 6,000
C) $70,000; 10
D) $30,000; 20

Question 49

(Figure: Market for Peanuts II) At a price floor of $750, there is an excess supply of _____ tons of peanuts.

A) 18 million
B) 12 million
C) 15 million
D) 37 million

Question 50

Suppose that the demand curve for an advanced technology product for businesses is given P =10,000 - 4Q³ and supply is P = 2,000 + 4Q³. The producer surplus at the equilibrium price is ____.

A) $6,000
B) $10
C) $70,000
D) $30,000

Question 51

Which of the following supply curves (where P is price per bushel and Q^S measures number of bushels) generates $64 of producer surplus at a market price of $10 per bushel?

A) Q^S = 7.5P - 1.5
B) Q^S = 10P - 3
C) Q^S = 2P - 4
D) Q^S = 6P - 8

Question 52

All else being equal, a demand increase:

A) causes consumer surplus to increase and producer surplus to decrease.
B) causes consumer surplus to decrease and producer surplus to increase.
C) causes both consumer and producer surplus to increase.
D) causes both consumer and producer surplus to decrease.

Question 53

(Figure: Price and Quantity II) The outward shift of the supply curve will cause consumer surplus to increase from area _____ to area _____.

A) A + B; C + D
B) A + B; A + B + C + D + E + F
C) B + C; F
D) A; A + B + C + D

Question 54

(Figure: Market for Peanuts II) If the government mandates a price floor of $750, the area of consumer surplus:

A) increases from A to A + B + C.
B) decreases from A + B + C to A.
C) increases from A to B + C.
D) decreases from B + C to A.

Question 55

Suppose that a local government has imposed a quota of 0.5 million gallons on water usage. Before the quota is enforced, the market demand curve is given by
Q^D = 10 - 2.25P
And the market supply curve is given by
Q^S = -10 + 2.75P
Where the quantity is measured in millions of gallons per month and the price is in dollars per thousand gallons. The deadweight loss as a result of the quota is ____.

A) $1,000
B) $500,000
C) $1,500
D) $1,605

Question 56

In the market for used cars, the demand and supply equations are given by Q^D = 12,000 - 0.4P and Q^S = 0.1P + 5,000, where P is the price per car and Q measures the quantity of cars. What is the size of the deadweight loss at a price floor of $15,000?

A) $250,000
B) $500,000
C) $750,000
D) $1 million

Question 57

(Figure: Price and Quantity III) An increase in demand caused consumer surplus to change from _____ to _____.

A) $16,000; $36,000
B) $8,000; $18,000
C) $8,000; $12,000
D) $4,000; $9,000

Question 58

(Figure: Market for Golf I) The supply of private golf courses is S_{private golf} and the supply of private and public golf courses is S_total. The government provision of public golf courses reduced the number of rounds per week played on private golf courses by:

A) 400.
B) 200.
C) 100.
D) 50.

Question 59

The market for plywood (a sheet of wood used in construction) is characterized by the following demand and supply equations: Q^D = 800 - 10P and Q^S = 50P - 1,000, where P is the price per sheet of plywood and Q measures the quantity of plywood. If the government imposes a price ceiling of $25 per sheet of plywood, producer surplus:

A) increases by $892.
B) decreases by $3,750.
C) decreases by $635.
D) decreases by $1,875.

Question 60

The demand and supply of ethanol (a renewable fuel from plant materials) are given by Q^D = 8,000 - 2,000P and Q^S = 1,000P - 1,000, where P is price per gallon and Q measures gallons per minute. What does it cost the government to subsidize ethanol by $0.30 a gallon?

A) $660
B) $14,000
C) $150
D) $2,000

Question 61

If the government quit subsidizing a product, consumer surplus would _____ and producer surplus would _____.

A) increase; decrease
B) decrease; decrease
C) increase; increase
D) decrease; increase

Question 62

(Figure: Market for Comic Books I) The quota at S₂ causes consumer surplus to:

A) increase from $8 to $16.
B) decrease from $8 to $2.
C) decrease from $16 to $12.
D) decrease from $12 to $4.

Question 63

The supply and demand for solar panels are given by Q^S = 5P - 5,000 and Q^D = 15,000 - 5P, where P is price per solar panel and Q measures the quantity of solar panels. Suppose the government provides a $500 subsidy per solar panel. Before the subsidy, producers receive ____ and after the subsidy, producers receive ____.

A) $2,000; $1,750
B) $2,000; $2,250
C) $2,250; $2,000
D) $1,750; $2,250

Question 64

(Figure: Market for Peanuts I) Suppose the government enacts a price ceiling of $250 per ton. Which of the following statements are TRUE? I. Consumer surplus before the price ceiling is area A + B + C.
II) Consumer surplus after the price ceiling is area D + E.
III) Producer surplus before the price ceiling is area D + E + G.
IV) Producer surplus after the price ceiling is area F.

A) I, II, and IV
B) I and IV
C) II and III
D) II, III, and IV

Question 65

Suppose that a local government has imposed a quota of 0.5 million gallons on water usage. Before the quota is enforced, the market demand curve is given by
Q^D = 10 - 2.25P
And the market supply curve is given by
Q^S = -10 + 2.75P
Where the quantity is measured in millions of gallons per month and the price is in dollars per thousand gallons. After the quota is imposed, the quantity demanded becomes ____.

A) 1,000,000
B) 500,000
C) 1,500,000
D) 1,605,000

Question 66

The supply and demand for solar panels are given by Q^S = 5P - 5,000 and Q^D = 15,000 - 5P, where P is price per solar panel and Q measures the quantity of solar panels. Suppose the government provides a $500 subsidy per solar panel. Before the subsidy, consumers pay price ____ and after the subsidy, consumers pay price ____.

A) $2,000; $1,750
B) $2,000; $2,250
C) $2,250; $2,000
D) $1,750; $2,250

Question 67

(Figure: Market for Tickets II) As a result of the tax, the deadweight loss is:
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A) B + E.
B) B + C + E + F.
C) E + F.
D) B + C.

Question 68

(Figure: Price and Quantity VII) The area that represents producer surplus with the demand curve D₁ is _____, and the area that represents producer surplus with the demand curve D₂ is ____.

A) D; C + D + E
B) D; D + C
C) C + D + E; D
D) B + C; A + B

Question 69

(Figure: Market for Tickets II) Refer to Figure: Market for Tickets II to answer the following question. Before the tax, consumer surplus is ____ and after the tax, consumer surplus is ____.

A) A + B + E; A
B) A + B + E; B
C) A + B + C + D +E + F; A + B + C + D
D) A + B + C; A + B + C + D

Question 70

(Figure: Price and Quantity I) The decrease in supply from S₁ to S₂ will cause consumer surplus to _____ and producer surplus to _____.

A) decrease by $10.50; decrease by $4.50
B) decrease by $5.50; increase by $3
C) increase by $6; decrease by $18
D) decrease by $10.50; decrease by $6.67

Question 71

Suppose the demand and supply curves for shampoo are given by
Q^D = 18 - 5P
Q^S = -3 + 2P
Where Q^D is the quantity of shampoo demanded (in thousands of bottles), Q^S is the quantity supplied, and P is the price of shampoo (in dollars per bottle). The consumer surplus at the equilibrium price is ____.

A) $9
B) $900
C) $450
D) $4.50

Question 72

Which of the following payroll taxes would be most beneficial for workers (e.g., provide the highest after-tax wage)?

A) 5% on workers and 10% on employers
B) 9% on workers and 6% on employers
C) 12% on workers and 1% on employers
D) 2% on workers and 14% on employers

Question 73

Suppose the demand and supply curves for units of university credits are given by
Q^D = 5,000 - P
Q^S = -1,000 + 4P
Where Q^D is the quantity of credits demanded, Q^S is the quantity supplied, and P is the price in dollars for each unit. Consumer surplus at the equilibrium price is ____.

A) $14,440,000
B) $7,800,000
C) $6,000,000
D) $7,220,000

Question 74

Suppose the demand and supply curves for shampoo are given by
Q^D = 18 - 5P
Q^S = -3 + 2P
Where Q^D is the quantity of shampoo demanded (in thousands of bottles), Q^S is the quantity supplied, and P is the price of shampoo (in dollars per bottle). The equilibrium price in this market is ____ and the equilibrium quantity is ____.

A) $3; 3,000
B) $3; 900
C) $6; 6,000
D) $2; 8,000

Question 75

(Figure: Market for Tickets II) Before the tax, consumers pay the price ____ and after the tax, consumers pay the price ____.

A) $5.50; $6.00
B) $5.50; $6.50
C) $6.00; $5.50
D) $5.00; $6.00

Question 76

Suppose that the demand curve for brown rice is given P= 50,000 - 3Q², and supply is P = -10,000 + 3Q². The consumer surplus at the equilibrium price is ____.

A) $1,000,000
B) $200,000
C) $100,000
D) $2,000,000

Question 77

Suppose that technological breakthroughs make jet packs affordable, convenient, and safe for personal transportation. The demand for automobiles would become _____ the consumer surplus from automobiles.

A) more price elastic, decreasing
B) more price inelastic, increasing
C) more price inelastic, decreasing
D) perfectly inelastic, increasing

Question 78

(Figure: Market for Grapefruits I) At a market price of $4, what is total consumer surplus?

A) $120
B) $320
C) $160
D) $80

Question 79

Suppose that the demand curve for brown rice is given by P= 50,000 - 3Q², and supply is P = -10,000 + 3Q². The equilibrium price is ____ and the equilibrium quantity is ____.

A) $110,000; 200
B) $20,000; 100
C) $100; 20,000
D) $2,000; 1,000

Question 80

(Figure: Market for Good X I) Which of the following statements is (are) TRUE? I. A tax on buyers of $3 per unit raises the price buyers pay to $6.
II) A tax on sellers of $3 per unit raises the price buyers pay to $6.
III) With a tax on sellers of $3 per unit, the share of the tax paid by buyers is 67%.

A) I, II, and III
B) I and III
C) II and III
D) I