Question 14-16 considers the market for milk. Suppose there is a 25% increase in income, what happens to the quantity demanded of milk?

For question 23-25, you are given the following data The buyers’ bid is the maximum they are will to spend for a single good and the sellers’ bid is the minimum they are willing to sell a single good for.   What is the producers surplus?

For questions 10-13, the following graph describes the market for train tickets.   What is consumer surplus when there is a $8 tax?

In a market, supply is perfectly elastic and demand is perfectly inelastic. If a tax is imposed in this market, .                  bears the entire burden of the tax and the equilibrium quantity                        .

What type of externality is illustrated by the bees’ pollination of crops?

Private goods can be provided by competitive markets because they are:

What does “internalizing an externality” mean?

Costs or benefits that fall on bystanders, not consumers or producers trading in the market are known as:

You will need to click on the pdf document below to view the Chapter 13, 14 Test; there are 22 questions for this version of the test. Write the problems down on your own paper showing appropriate work. Submit Canvas Quiz and attach your work to an email to send to me for grading.  Thank you for being mature and understanding!  Chapter 13 and 14 RE-TEST.pdf

An example of a common resource would be: