Consumers, Producers and the Efficiency of Markets
About the Lecture
The lecture Consumers, Producers and the Efficiency of Markets by James DeNicco is from the course Principles of Microeconomics (EN). It contains the following chapters:
- A Closer Look at the Consumer Surplus
- A Closer Look at the Producer Surplus
- The Dead Weight Loss of Taxation
- Elasticity and Dead Weight Loss
- Taxation and Trade
- Recap
Included Quiz Questions
Consumer surplus is created when a consumer’s willingness to pay is _______________ the price level and it _______________ when prices decrease.
- above; increases
- below; increases
- above; decreases
- below; decreases
Producer surplus is created when a producer’s cost is _______________ the price level and it increases when prices _______________.
- below; decrease
- below; increase
- above; decrease
- above; increase
Which of the following is true about levying a tax?
- Less elastic demand results in a smaller deadweight loss and the buyer bears a larger share of the tax burden.
- Less elastic demand results in a larger deadweight loss and the buyer bears a larger share of the tax burden.
- Less elastic demand results in a larger deadweight loss and the seller bears a larger share of the tax burden.
- More elastic demand results in a smaller deadweight loss and the seller bears a larger share of the tax burden.
Which of the following is true about increasing the size of a tax?
- Deadweight loss increases and tax revenue sometimes increases.
- Deadweight loss decreases and tax revenue increases.
- Deadweight loss increases and tax revenue increases.
- Deadweight loss increases and tax revenue decreases
A tariff _______________ over all surplus, but increases _______________ surplus.
- decreases; producer
- decreases; consumer
- increases; producer
- increases; consumer
Author of lecture Consumers, Producers and the Efficiency of Markets
James DeNicco
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