Shifts in Supply and Demand
Elasticity
Graphing
Surplus
Government Intervention
100
if increases and the supply curve remains unchanged, what happens to both the equilibrium price and quantity?
Equilibrium Price and Quantity Increase.
100
If the absolute value of the price elasticity of demand for good x is 0.5 then a 10% decrease in the price of Good x will result in a ______% decrease/increase in the quantity demanded of good x.
5% increase
100
What is the equilibrium price?
$14
100
What would be Bassel's consumer surplus at a price of $50??
$40
100
Draw an inneffective price floor.
200
The price of peanut butter (a complement to jelly) decreases.
What happens to the equilibrium quantity and price of jelly.
Effect on P: Increases
Effect on Q: Increases
200
A 10% increase in income causes the quantity demanded for high-end electric cars to increase by 15%. Calculate the income elasticity of demand (Ei) and classify this good as an Inferior, Normal (Necessity), or Luxury good.
The coefficient is +1.5. The good is a Luxury good.
200
If the market price is set at $600 what is the quantity demanded and the quantity supplied? Is this a shortage or a surplus?
Qd=180
Qs= 220
Suplus
200
Identify the consumer suplus at equilibrium.
WYZ
200
Identify the new Q and P as a the result of a per unit subsisidy for producers.
300
The cost of steel for car manufacturing increases?
What happens to equilibrium price and quantity
P: increase
Q: decreases
300
State the explicit rule describing the relationship between a price change and total revenue (TR) when the demand for a good is elastic.
The percentage change in quantity demanded is proportionally greater than the percentage change in price. Therefore, a price increase causes TR to fall, and a price decrease causes TR to rise.
300
At a price of $2, what is the size of the shortage, about?
50ish
300
What is the consumer surplus at equilibrium?
What is the total surplus?
cs=$50
TS= $100
300
calculate the deadweight loss from the tax.
$100000
400
The price of a substitute good decreases, AND a new regulation requires expensive pollution controls on all factories.
What change is their to equilibrium price and quantity?
P: Indeterminate
Q: Decreases
400
When the price of the Netflix streaming service rises by 10%, the quantity of Hulu subscriptions increases by 8%. Calculate the cross-price elasticity of demand and state whether these two services are substitutes or complements.
The coefficient is +0.8. They are substitutes.
400
What is the price elasticty of supply of the price increase on the graph below? is it elastic, inelastic or unit elastic?
1.5
elastic
400
Calculate the size of the producer surplus. 
$200,000
400
What is the size of the tax on each unit?
$1.25
500
A massive hurricane destroys half the crop yield, AND the price of a complementary good for this product falls.
P: increases
Q: Indterminate
500
A concert promoter raises ticket prices from $50 to $60 . Consequently, ticket sales fall from 10,000 to 8,500. Calculate the price elasticity of demand coefficient and state whether the promoter's total revenue increased or decreased.
The coefficient is 0.75. Total revenue increased.
500
At equilibirum price the consumer suplus is found in which area?
MZN
500
Identify the are of consumer suplus in the orginal eqwuilibrium price.
Identify the area of the consumer suprlus after the increase in supply
1. B,P,E
B,P1, E1
500
if there is a tax of P3-P1 then which area represents the government revenue from this tax?
BD