18. The equations for a competitive market's demand and supply curves are, respectively, QD = 1000 - 5p and QS = 3p. A p

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18 The Equations For A Competitive Market S Demand And Supply Curves Are Respectively Qd 1000 5p And Qs 3p A P 1 (102.01 KiB) Viewed 56 times

18. The equations for a competitive market's demand and supply curves are, respectively, QD = 1000 - 5p and QS = 3p. A price ceiling is imposed upon the market at the level of $100/ commodity unit. The quantity traded in this market is (a) 200 units. (b) 300 units. (c) 400 units. (d) 500 units. (e) None of the above. 19. A competitive market is at equilibrium. An excise tax has been imposed upon the market at a rate of $t/traded unit. At this equilibrium, the Consumers' Surplus is $700, the Deadweight Loss is $300, the Tax Revenue is $500, and the Total Surplus is $2,000. How large is the Producers' Surplus? (a) $600. (b) $500. (c) $400. (d) $300. (e) The question cannot be answered unless the numerical value of the tax rate t is given. 20. Is the following statement True or is it False? If a market is competitive and becomes subject to any regulation that causes the equilibrium quantity traded in the market to be reduced, then the regulation causes a Deadweight Loss. (a) True.