2. Quiz
4
Name
_______________________________________
ID
_________________________________________
The
Ministry
of
Pizza
has
hired
you
to
provide
economic
analysis
consulting.
Please
analyze
the
consequences
of
the
following
policy
proposals:
1.
Set
a
minimum
price
of
60
a.
Shortage
or
Surplus
and
how
much?
b.
New
quantity
sold
c.
Size
of
the
deadweight
loss
2.
Set
a
maximum
price
of
20
a.
Shortage
or
Surplus
and
how
much?
b.
New
quantity
sold
c.
Size
of
the
deadweight
loss
3.
Impose
a
tax
of
20
a.
Shortage
or
Surplus
and
how
much?
b.
New
quantity
sold
c.
Size
of
the
deadweight
loss
d.
Amount
of
tax
collected
4.
Impose
a
subsidy
of
40
a.
Shortage
or
Surplus
and
how
much?
b.
New
quantity
sold
c.
Size
of
the
deadweight
loss
d.
Amount
of
subsidy
paid
5.
The
world
price
is
70
and
we
allow
exports
a.
New
quantity
sold
c.
Who
will
be
happy?
d.
Who
will
be
sad?
6.
The
world
price
is
40
and
we
allow
imports
a.
New
quantity
sold
c.
Who
will
be
happy?
d.
Who
will
be
sad?
