Quiz # 3-2

Figure 9.6: A Price Support Problem

Draw the appropriate lines you need to answer questions 9-13 which are based on Figure 9.6

9. Refer to Figure 9.6. As a result of this policy, quantity will
a. fall to 300.
b. rise to 400.
c. stay at 400.
d. fall to 400.
e. rise to 600.

10. Refer to Figure 9.6. As a result of this policy, consumer surplus will
a. fall to $15.
b. fall to $2250.
c. rise to $2500.
d. fall to $5000.
e. rise to $5000.

11. Refer to Figure 9.6. As a result of this policy, producer surplus will be
a. $2000.
b. $3375.
c. $4500.
d. $6000.
e. $12,000.

12. Refer to Figure 9.6. The amount the government pays in the market to implement this policy is
a. $20.
b. $3000.
c. $4000.
d. $6000.
e. $12,000.

13. Refer to Figure 9.6. Including the consumers' expected tax burden, the total change in welfare from this policy is
a. -$6000.
b. -$5250.
c. -$4500.
d. $4500.
e. $5250.


14. Compared to a tariff, an import quota, which restricts imports to the same amount as the tariff, will leave the country as a whole
a. worse off than a comparable tariff.
b. not as bad off as a comparable tariff.
c. about the same as a comparable tariff.
d. any of the above can be true.