Question

1) Consider a normal market with a downward-sloping demand curve and an upward-sloping supply curve. Which of the following cases would definitely result in a decrease in consumer surplus? For each case, assume that the market is initially in equilibrium and that everything else is held constant except for the change described in the case Case 1: The supply curve shifts to the left. Case 2: The supp Case 3: The government imposes a binding price ceiling. Case 4: The government imposes an a) Only Case 1 b) Only Case4 c) Both Cases 1 and 4 d) Cases 2, 3, and 4 ly curve shifts to the right. excise tax. Price 30 Supply 12 80 160 210 240 320 Quantity 12) Suppose sellers, rather than buyers, were required to pay this tax (in the same amount per unit as shown in the graph). Relative to the tax on buyers (consumption), the tax on sellers would result in: a) buvers bearing the same share of the tax burden. b) sellers bearing the same share of the tax burden. c) the same amount of tax reveria for tha g d) All of the above are correct. LE (Ctri)