ECON 1101 Study Guide - Final Guide: Marginal Utility, Relate, Marginal Revenue
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ECON 1101 Full Course Notes
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Section number: ______________________________________ (ta"s name and section number are worth 4 points, not bonus. ) Points are allocated on a 200 point scale. If you need more space, use the back of the page. Read each question carefully and be sure to answer all parts of every question. There should be 12 pages including the cover sheet. None of the allocations below are pareto efficient. This question asks you do determine the impact of various government policies in econland. Producer surplus does not include revenues obtained on sales of quota. ) (i) 25 (b) on graph 1 below illustrate cs and ps in case (i), a price floor with efficient rationing. Graph 1: cs and ps with price floor. 3 (c) both government policies have lower total surplus than the free market for the same reason. What efficiency condition do they both violate? (d) for policy (i) above, a price floor, we assumed rationing is efficient.
