Consider a market where demand is D: P = 60 - 3Q and supply is S: P = 4 + 4Q.
1. Equilibrium quantity Qe is
a. $8
b. $9
c. $10
d. $11
2. Equilibrium is price Pe
a. 33
b. 34
c. 35
d. 36
3. Consumer surplus CS is
a. $94
b. $95
c. $96
d. $97
4. Producer surplus PS is
a. $128
b. $129
c. $130
d. $131
5. Total surplus TS is
a. $221
b. $222
c. $223
d. $224
6. When the government imposes a price ceiling = $12, disequilibrium between quantity demanded and quantity supplied results in
a. Deficit = 10
b. Surplus = 10
c. Deficit = 14
d. Surplus = 14
7. Total surplus TS' with the price ceiling is
a. $96
b. $98
c. $100
d. $104
8. Based on your calculation of equilibrium and price ceiling quantities, demand is
a. elastic
b. perfectly elastic
c. inelastic
d. perfectly inelastic
9. Based on your calculation of equilibrium and price ceiling quantities, supply is
a. elastic
b. perfectly elastic
c. inelastic
perfectly inelastic