Questions from Macroeconomics

Q: John has been working as a tutor for $300 a semester

John has been working as a tutor for $300 a semester. When the university raises the price it pays tutors to $400, Jasmine enters the market and begins tutoring as well. How much does producer surplus...

Q: Suppose the demand for French bread rises. Explain what happens to

Suppose the demand for French bread rises. Explain what happens to producer surplus in the market for French bread. Explain what happens to producer surplus in the market for flour. Illustrate your an...

Q: Explain each of the following statements using supply-and-demand

Explain each of the following statements using supply-and-demand diagrams. a. “When a cold snap hits Florida, the price of orange juice rises in supermarkets throughout the country.” b. “When the weat...

Q: In a supply-and-demand diagram, show producer and

In a supply-and-demand diagram, show producer and consumer surplus at the market equilibrium.

Q: Draw the supply and demand curves for turkey. In the equilibrium

Draw the supply and demand curves for turkey. In the equilibrium, show producer and consumer surplus. Explain why producing more turkeys would lower total surplus.

Q: Eggs have a supply curve that is linear and upward-sloping

Eggs have a supply curve that is linear and upward-sloping and a demand curve that is linear and downward-sloping. If a 2 cent per egg tax is increased to 3 cents, the deadweight loss of the tax a. i...

Q: Consider the market for rubber bands. a. If this

Consider the market for rubber bands. a. If this market has very elastic supply and very inelastic demand, how would the burden of a tax on rubber bands be shared between consumers and producers? Use...

Q: How do the elasticities of supply and demand affect the deadweight loss

How do the elasticities of supply and demand affect the deadweight loss of a tax? Why do they have this effect?

Q: If the government doubles the tax on gasoline, can you be

If the government doubles the tax on gasoline, can you be sure that revenue from the gasoline tax will rise? Can you be sure that the deadweight loss from the gasoline tax will rise? Explain.

Q: When a nation opens itself to trade in a good and be

When a nation opens itself to trade in a good and be- comes an importer, a. producer surplus decreases, but consumer surplus and total surplus both increase. b. producer surplus decreases, consumer su...