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51.

Suppose initially the price of a certain good is fixed below the market equilibrium. Relaxing the price control will lead to

(1)an increase in revenue.
(2)a decrease in demand.
(3)an increase in revenue only if the demand for this good is inelastic.
(4)an increase in the quantity supplied.
52.

The diagram below shows that the unit price of a commodity falls from $10 to $8 when the government provides a per-unit subsidy of $5 to its suppliers.

Question figure

What is the total amount of suppliers' benefit from the government subsidy?

53.

The flats under the Home-Ownership Scheme are allocated by a draw. This implies that

54.

Suppose the government imposes a per unit sales tax of $5 on good X. Under what condition will the price increase by $5?

55.
Question figure

In the above figure, the market price of good X is fixed by the government at P*. If the demand increases from D to D',

(1)the excess demand will be greater.
(2)the quantity transacted will not change.
(3)the sales revenue will increase when the demand is elastic.
56.

For Question No.8 and 9, consider the following supply and demand schedule of wine in a certain country:

Price ($)Quantity demanded (Units)Quantity supplied (Units)
309060
328065
347070
366075
385080
404085

Suppose initially the wine market is in equilibrium. If the government imposes a tax of $6 for each unit of wine sold, the new equilibrium price will be

57.

For Question No.8 and 9, consider the following supply and demand schedule of wine in a certain country:

Price ($)Quantity demanded (Units)Quantity supplied (Units)
309060
328065
347070
366075
385080
404085

Government revenue from the above tax will be _______.

58.

The following diagram shows the supply of and the demand for the tickets of a concert.

Question figure

If the tickets are sold at P2 instead of P1,

(1)a black market may occur.
(2)the sales revenue will be smaller.
(3)the quantity transacted will be greater.
(4)the sales revenue may increase or decrease, depending on the price elasticity of demand.
59.

The demand for good X is perfectly inelastic. If the government offers a subsidy of $4 for each unit of X produced, the equilibrium price of X will

60.

If the government imposes an effective quota on good Y, the market price of Y will _______ and its quantity transacted will _______.

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