ECON 157 Study Guide - Final Guide: Mecc, Intelligence Quotient, Muumuu

22. A market is in equilibrium at the point P = $100, Q = 6000. You are told that at that point, the elasticity of demand is 1.2 (or 6/5) and the elasticity of supply is 3.6 (or 18/5). If a $1 per unit tax is placed on consumers in this market, then you know that the fraction of the tax (rounded to the nearest two decimal places) that falls on consumers (buyers) will be: A)0 B) 0.05 C) 0.10 D) 0.15 E) 0.17 F) 0.20 G) 0.25 H) 0.30 1) 0.33 J) 0.40 K) 0.42 L) 0.50 M) 0.54 N) 0.60 0) 0.65 P) 0.67 Q) 0.70 R) 0.75 S) 0.80 T) 0.83 U) 0.85 V) 0.90 W) 0.95 X) 1 Y) 0.77 Z) none of the above

17. If the price of X is set at $0.10 per unit, the consumer surplus gained by this consumer each month through purchasing X will be: A) $0.10 B) $4 C) $13.50 D) $15.75 E) $16 F) $64 G) $124 H) $128.251) $132 J) $133.50 K) $134.25 L) $136 M) $140 N) $140.250 ) $143 P) $143.75 ) $144 R) $159.75 S) $160 T) $164 U) $196 V) $200.25W ) $221.75 X) $224 Y) $0 Z) none of the above

13. If the price of X is set at $24.00 per unit, the number of units of X purchased by this consumer each month will be: A) 1 B) 2 C) 3 D) 4 E) 5 F) 6 G) 7 H)8 1) 9 J) 10 K) 12 L) 14 M) 16 N) 18 0) 20 P) 22 Q) 24 R) 26 S) 28 T) 30 U) 36 V) 40 W) 44 X) 52 Y) 56 Z) none of the above