EC120 Midterm: EC120_MidTerm_Test_2_2015_ANSWERS

16. The government places a $12 per unit tax on the buyers of widgets. At the new equilibrium, the price received by sellers will be: 62=100 - OlQ A) $38 B) $40 C) $42 D) $44 E) 546 F) $47 .380. G) $48 H) $49 1) $50 J) $52 D-40+002 (280)

16. Continuing question 15, the government continues to place a $12 per unit tax on the buyers of widgets. At the new equilibrium, the price paid by buyers (including the tax paid) will be: A) $78 B) $58 C) $52 D) $50 E) $48 F) $46 G) $44 H) $42 I) $40 J) $38

12. If this firm faces a price of $38, the number of units it will produce per day in the short run is: A) 4 B) 5 C) 6 D) 7 E) 8 19 MC=42+2 G) 10 H) 11 1) 12 J) none of the above 38- 49,+2 9- 13. This firm's shut down price is: B) $8 C) $10 D) $11 E) $12 H) $15I ) $16 J) none of the above AVC= 2 F) $13 AVC=29 +2+1