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If the government is concerned about the excessively low price in the unregulated free market equilibrium above, it could impose a __________. If the government sets the price at $8, there is _________ and the amount is equal to __________. 

Suppose that the government imposes a subsidy of $6 per Grubhub delivery to encourage food delivery instead of eating at restaurants. What is the consumer surplus?

Which point(s) ________represent efficiency in the economy?

Raza loves the Escape Room and he has already gone to the Escape Room five times this week. His twin brother Zavi is asking him to go with him for what would be Raza’s sixth time. Assuming that Raza is rational and that his dollar measure of this sixth time is $40, Raza will choose to go if: (i) The dollar measure of the cost to Raza of this sixth time is $40. (ii) The dollar measure of the cost to Raza of this sixth time is $60. (iii) The dollar measure of the cost to Raza of this sixth time is no greater than $40.

Relative to the free market equilibrium, producer surplus after the implementation of this program has _______________ to  _____________. (Fill in the blanks.)

You have taken ECON 1101 Principles of Microeconomics and now as a marketing intern for a small local theater you need to recommend a price change to the manager of a theater who wants to increase its total revenue.  During their last season performance, the theater charged $8 per ticket and they sold 110 tickets. You find out that a similar theater (a competitor) charged $12 per ticket and they sold 90 tickets. Using the midpoint formula, the price elasticity of demand (in absolute value) in this locality is _________. Therefore, demand is _________. You would recommend a price _________________ because the total revenue would then __________. (Fill in the blanks.)

Consider the market for the Apple watch. Suppose that demand is perfectly elastic in the short run and supply is perfectly inelastic. If a tax is imposed in the market, the entire burden of the tax falls on___________, while ___________ surplus does not change. (Fill in the blanks.)

Who are the buyers in the economy?

Question 37 is based on the graph above, which represents the demand and supply curves in the market for some good. Suppose the government imposes a $8 tax. What is the total surplus in this market after the introduction of this policy?

Use the information below to answer questions 9 – 11. You are the Independent System Operator (ISO) in an electricity market. You have received the bid information in the table below for a double auction. Each buyer’s bid is an offer to buy one Mhw of electricity. Each seller’s bid is an offer to sell one Mhw of electricity. Buyer Bid (Offer to buy in $) Seller Bid (Offer to sell in $) Ali $200 Zitong $10 Alya $55 Zaved $70 Aysha $70 Zavi $200 Adnan $80 Zeenat $55 Abdul $10