1. If the government sets a minimum price above the market
equilibrium price, what will happen?
a. will
you have a shortage or surplus?
b. how
much?
c. will
you have deadweight loss?
d. how
much?
e. will
you have a change in consumer surplus?
f. will
you have a change in producer surplus?
g. who
will be happier?
h. who
will be sadder?
2. If the government sets a maximum price below the market
equilibrium price, what will happen?
a. will
you have a shortage or surplus?
b. how
much?
c. will
you have deadweight loss?
d. how
much?
e. will
you have a change in consumer surplus?
f. will
you have a change in producer surplus?
g. who
will be happier?
h. who
will be sadder?
3. What is tax liability?
4. What is tax incidence?
5. Can someone have the tax liability but not the tax
incidence?
6. What happens to the supply curve when a tax is imposed?
7. Can you calculate the tax revenue and deadweight loss?
No comments:
Post a Comment