6. 1.What is the equilibrium price?
2.What is the equilibrium quantity?
3. If the market price was 80, how many pizzas would be sold?
4. If the market price was 30, how many pizza would be sold?
5. If the market price was 80, would there be a shortage,
surplus, or equilibrium?
6. If the market price was 30, would there be a shortage,
surplus, or equilibrium?
7.What would be the quantity demanded at a price of 80?
8.What would be the quantity supplied at a price of 80?
9.What would be the quantity demanded at a price of 30?
10.What would be the quantity supplied at a price of 30?
10 Questions
41. 1.What is the equilibrium price? 50
2.What is the equilibrium quantity? 5
3. If the market price was 80, how many pizzas would be sold? 2
4. If the market price was 30, how many pizza would be sold? 3
5. If the market price was 80, would there be a shortage, surplus,
or equilibrium? surplus
6. If the market price was 30, would there be a shortage, surplus,
or equilibrium? shortage
7.What would be the quantity demanded at a price of 80? 2
8.What would be the quantity supplied at a price of 80? 8
9.What would be the quantity demanded at a price of 30? 7
10.What would be the quantity supplied at a price of 30? 3
10 Questions
47. 1.What is the equilibrium price before the tax?
2.What is the equilibrium quantity?
3. If the tax is 20 SAR, what will be the new price?
4. If the tax is 20 SAR, how many pizza would be sold?
5.What will be the total revenue with the new tax?
6. How much tax will the seller pay?
7. How much tax will the buyer pay?
8. How much will the total tax be?
9. How much did the seller earn after paying the tax?
10.Why isn’t the new price 70?
Pizza Tax Questions
60. 0
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Shift the curve up by 20
75. • Taxes discourage market activity
• Value creation is reduced
• Buyers and sellers share the burden
• Buyers pay more, sellers receive less
Taxes
76. Prepare for Exam 2
1. Read Chapters 4, 5, and 6
2. Review lecture slides on blog
3. Review lecture questions on blog
4. Review your class notes
5. Study alone for a while
6.Then study with smart friends
7. Don’t be late for exam
8. Bring pencil and calculator
77. Chapter 4
The Market Forces of Supply and Demand
market
competitive market
quantity demanded
law of demand
demand schedule
demand curve
normal good
inferior good
substitutes
complements
quantity supplied
law of supply
supply schedule
supply curve
equilibrium
equilibrium price
equilibrium quantity
surplus
shortage
law of supply and demand
78. Chapter 5
Elasticity and Its Application
elasticity
price elasticity of demand
total revenue
total expenditure
income elasticity of demand
cross-price elasticity of demand
price elasticity of supply
79. ELASTICITY EQUATION BENCHMARK
Price Elasticity
of Demand
Cross-Price
Elasticity
Income
Elasticity
Price Elasticity
of Supply
Midpoint
Formula
Inelastic | Elastic
1
Compliments | Substitutes
0
Inferior | Normal | Luxury
0 1
Inelastic | Elastic
1
%∆QD
%∆P
%∆QS
%∆P
%∆QD1
%∆P2
%∆QD
%∆I
∆Q
∆PQ
Px