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Suppose the government introduces a tax on gasoline.  Alt Text: gas tax After the tax, what price do buyers pay? [buyers] per gallon. What price do sellers receive? [sellers] per gallon. What quantity is produced after the tax (Qtax)? [qtax]

Provide an explanation for why you chose rival or non-rival; and excludable or non-excludable for beer/alcohol.  Your explanation should incorporate the good or service and not simply restate a definition.

The market for Las Vegas hotel rooms Show on a supply and demand graph the impact of the following events on the equilibrium price and quantity. The heat wave in July raises temperatures to 115 degrees leading consumers to cancel their reservations. The demand for hotel rooms [demand]. What factor caused the shift? [demandfactor] Shift in supply [supply].  Effect on equilibrium price? [price] Effect on equilibrium quantity? [quantity]

Referring to the data on car and truck production, compute the opportunity cost of producing trucks and cars below. Data table Adam Billy Trucks Cars Trucks Cars 0 12 0 4 1 9 2 3 2 6 4 2 3 3 6 1 4 0 8 0   Opportunity Costs Adam  Billy OCtruck [atruck] OCtruck [btruck] OCcars [acars] OCcars [bcars] Which person has the comparative advantage in producing trucks? [trucks]  Which person has the comparative advantage in producing cars? [cars] 

The figure represents a restaurant operating in monopolistic competition. Alt Text: meals at a restaurant The firm’s efficient scale occurs at [eff] meals per day. Therefore the firm [yesno] have excess capacity of [amount] meals per day.   

Based on your answer to the previous question, are museum trips and library visits complements or substitutes? Elasticity Price Elasticity Cross Price Elasticity Income Elasticity e = 0, perfectly inelastic e < 1, inelastic e = 1, unit elastic e > 1, elastic e = ⚯, perfectly elastic e > 0, substitutes e < 0, complement e = 0, not related e > 0, normal good e < 0, inferior good e = 0, not related

The figure shows the market for a winter jackets. Alt Text: winter jackets  What is the initial equilibrium price [price] and quantity [quantity] of jackets? Suppose the government imposes a price control at $100 per jacket. How many jackets are purchased after the price control is imposed? [pricecontrol] Will there be a shortage or surplus after the price control? [impact]

The market for Las Vegas hotel rooms Show on a supply and demand graph the impact of the following events on the equilibrium price and quantity. Hotels cut their prices, offering deep discounts on hotel rooms.  What will be the impact on the market for Las Vegas hotel rooms? Select all that apply. 

The table below shows the supply and demand schedules for the market for bottles of a prescription drug. Data table Price ($ per bottle ) Quantity Demanded Quantity Supplied 6 32 18 7 26 26 8 20 34 9 14 42 10 8 50   The initial market equilibrium is [price] and [quantity] bottles of the prescription drug. At what price(s) would there be a surplus in the market for the prescription drug? [surplus].

The figure shows the market for potato chips. Suppose the government introduces a price control at 70 cents per bag.   Alt Text: market for chips Is this a price floor or price ceiling? Why do you think the government decided to set this price control?