Midterm: Fall 1997: Supplementary Worksheet

Exam # ______

For question 4:

 
       a. Diagram a price ceiling at P=$2                        b. Size of tax = ______
           Size of shortage = ______                                   Indicate tax revenue collected
           Change in consumer surplus = ______                 Indicate the welfare loss

For question 6:

 
6. b. (1) When both producers supply the market: consumer surplus=______
        total producer surplus=______
        producer surplus for California suppliers=______
        (2) Now indicate the consequences of Passage C in the article:
        Does consumer surplus rise or fall? ______ By how much? ______
        Does producer surplus for California suppliers rise or fall? ______ By how much? ______