Market Outcomes and Tax Incidence

Poll

Who do you think will pay for new, higher U.S. tariffs?

• The U.S. buyers who import goods from foreign countries

• The foreign sellers who send goods to the U.S.

• Both the foreign sellers and the domestic buyers

• Not sure

Multiple Choice

The difference between the price the good was sold at and the minimum price the firm would have accepted for the good is called

• willingness to sell

• product markup

• producer surplus

• price-cost margin

Multiple Choice

Jack is willing to pay $800. Jill is willing to pay $700. Jerry is willing to pay $500. If the price is $600, what is the total consumer surplus for the group?

• $200

• $300

• $400

• $500

• $1500

Multiple Choice

If, for a producer, large changes in price lead to relatively small changes in quantity, the producer’s

• demand is price elastic.

• demand is price inelastic.

• supply is price elastic

• supply is price inelastic

Multiple Choice

Deadweight loss can be thought of as a surplus that is transferred from producers of consumers and given to

• The government

• competitors in other markets

• taxpayers

• nobody

Poll

Who do you think will pay for new, higher U.S. tariffs?

• The U.S. buyers who import goods from foreign countries

• The foreign sellers who send goods to the U.S.

• Both the foreign sellers and the domestic buyers

• Not sure