University of Louisiana, Lafayette - ECON 528 Module 5 Homework Assignment

University of Louisiana, Lafayette - ECON 528 Module 5 Homework Assignment Started on Sunday, 23 September 2018, 5:59 PM State Finished Completed on Monday, 24 September 2018, 10:06 PM Time taken 1 day 4 hours Marks 21.00/25.0 0 Grade 8.40 out of 10.00 (84%) ECON528-850-ECON528-010- Question 1 Correct Mark 1.00 out of 1.00 Figure 4-5 shows the market for apartments in Springfield. Recently, the government imposed a rent ceiling of $1,000 per month. Refer to Figure 4-5. What is the value of consumer surplus after the imposition of the ceiling at $1000 per month? Select one: a. $270,000 b. $230,000 c. $430,000 d. $120,000 Your answer is correct. The correct answer is: $230,000 Question 2 Correct Mark 1.00 out of 1.00 Figure 4-5 shows the market for apartments in Springfield. Recently, the government imposed a rent ceiling of $1,000 per month. Refer to Figure 4-5. What is the value of producer surplus after the imposition of the ceiling? Select one: a. $430,000 b. $40,000 c. $300,000 d. $100,000 Your answer is correct. The correct answer is: $40,000 Question 3 Correct Mark 1.00 out of 1.00 Figure 4-5 shows the market for apartments in Springfield. Recently, the government imposed a rent ceiling of $1,000 per month. Refer to Figure 4-5. What is the value of the deadweight loss after the imposition of the Select one: a. $125,000 b. $50,000 c. $175,000 d. $260,000 Your answer is correct. The correct answer is: $50,000 Question 4 Correct Mark 1.00 out of 1.00 An increase in input costs in the production of electric automobiles caused the price of electric automobiles to rise. Holding everything else constant, how would this affect the market for gasolinepowered automobiles (a substitute for electric automobiles)? Select one: a. The demand for gasoline-powered automobiles would decrease because consumers could afford to buy fewer gasoline-powered automobiles. b. The demand for gasoline-powered automobiles would increase and the equilibrium price of gasoline-powered automobiles would decrease. c. The demand for gasoline-powered automobiles would increase and the equilibrium price of gasoline-powered automobiles would increase. d. The supply of gasoline-powered automobiles would increase and the equilibrium price of gasoline-powered automobiles would decrease.