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Lecture Exercise #10Spring 2022You will work on these exercises during class on Friday, February 4th. You are strongly encouraged to work with 3 or 4 of your peers, where you will discuss and work through the problems together. The instructional team will circulate between groups to answer your questions and provide guidance. Post your answers on Poll Everywhere (PE) using the link provided by Professor Balaban. Note that the PE link will be opened on command during class and will close with 15-20 minutes left in class. A warning will be given a few minutes before the link is closed. We will review the answers after the link isclosed.Honor Code Notice: You are not permitted to upload any content from this course to the web in any form, including but not limited to Chegg, Course Hero, Coursera, Google Drive, etc. If you post my coursecontent, you may be violating my intellectual property rights. In utilizing web sources to upload or download course content, you risk violating the University’s Honor Code.This graph represents the market for a six-pack of cola. Use the graph to answer questions 1-5.1. Suppose the government imposes a tax so that the consumption of cola is reduce to 2 six-packs. How much tax revenue will the government collect after the tax is imposed?a. $6b. $10c. $12d. $202. If the government gives every buyer a subsidy of $5 per-six-pack, how many transactions will occur?a. 5b. 6c. 7d. 83. If the government gives every buyer a subsidy of $5 per-six-pack, what price will the buyer pay for a six-pack?a. $4b. $6c. $7d. $94. If the government gives every buyer a subsidy of $5 per-six-pack, what is the total amount that the government must pay to fund this program?a. $20b. $30c. $40d. more than $405. If the government gives every seller a subsidy of $5 per-six-pack, is there a deadweight loss in the market?a. Yes, there is a deadweight loss due to unrealized gains from trade.b. Yes, there is a deadweight loss due to wasted resources.c. No, there is not a deadweight loss.6. Suppose Rachel is willing to pay someone up to $2000 to paint her porch and that the minimum price that Paula is willing to accept to paint a porch is $1200. If the government imposes a $500 tax on anyone that paints a porch, which of the following statements is true? For simplicity assume there is only one buyer and one seller in this market.a. There is a deadweight loss in this market equal to $500.b. There is a deadweight loss in this market equal to $800.c. There is a deadweight loss in this market equal to $1200.d. The $500 tax will not create a deadweight loss in this market.7. Suppose Rachel is willing to pay someone up to $2000 to paint her porch and that the minimum price that Paula is willing to accept to paint a porch is $1200. If the government imposes a $900 tax on anyone that paints a porch, which of the following statements is true? For simplicity assume there is only one buyer and one seller in this market.a. There is a deadweight loss in this market equal to $500.b. There is a deadweight loss in this market equal to $800.c. There is a deadweight loss in this market equal to $1200.d. The $900 tax will not create a deadweight loss in this


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UNC-Chapel Hill ECON 101 - Lecture Exercise 10

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