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ECC1000 - Principles of microeconomics - S2 2025

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Suppose a tax of $9 is instead levied on sellers in this market. How does the deadweight loss now compare to when the tax was levied on the buyers?

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Suppose a tax of $9 is levied on buyers in this market. What is the new producer surplus with this tax? Your answer should be a number - do not add any words or symbols.

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What is the equilibrium price? Your answer should be a number - do not add any words or symbols.

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The figure shows the demand and supply curves in the salt market. The government imposes an excise tax on the price of salt, to be paid by the suppliers. As a result, the equilibrium quantity falls from Q* to Q^T. Based on this information, read the following statements and select the correct option(s) that refer to after the tax has been implemented.

Image failed to load: The demand and supply curves in the salt market

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The figure shows the market supply curve for second-hand textbooks, together with original and new demand curves, where the curve has shifted due to the arrival of new students. Based on this information, read the following statements and select the correct option(s).

Image failed to load: The market supply curve for second-hand textbooks, together with original and new demand curve

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There are five students who are looking to buy one second-hand textbook each. Their willingness-to-pay are £5, £6, £8, £12, and £15, respectively. Based on this information, read the following statements and select the correct option(s).

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A person is willing to pay $5 for a 1st bottle of water, $3 for a 2nd bottle of water, and $1 for a 3rd bottle of water. Suppose this person is the only consumer in this market and that the market price for water rises from $1 per bottle to $2 per bottle. Using this information, read the following statements and select the correct option(s).

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The market for apples is in equilibrium at a price of $0.50 per pound. If the government imposes a price floor in the market at a price of $0.40 per pound:

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A price floor has been set at point b. The area of deadweight loss that results from this price floor is:

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If

rent controls are set at

Rent_1:

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