1. The following supply and demand equations describe the market for pumpkins:
D: Q = 200 - 8P
S: Q = 10 + 2P
a. What is the equilibrium price and quantity in the pumpkin market? (1/2 point)
NAME: ___________________________________________________________________________
Economics 150 Introduction to Economics Fall 2023
Exam 2: 10/04/2023
20 points
ECN 150 Regan Exam 2 p.2
b. Compute consumer, producer and total economic surplus. (1 1/2 points)
c. A new $4 tax is levied on buyers. Using words and math, explain what happens
immediately in the pumpkin market. (1 1/2 points)
ECN 150 Regan Exam 2 p.3
d. Using words and math, explain what happens over time in the pumpkin market. (1
1/2 points)
e. Based on your results for part d, which curve, supply or demand, is more elastic?
(1 point)
f. Compute tax revenue. (1/2 point)
ECN 150 Regan Exam 2 p.4
g. Compute the change in total economic surplus from the tax. (1 point)
h. Draw the market for pumpkins. Clearly label your axes and all data points from
parts a, c, and d. Label the deadweight loss and the tax revenue. (1 point)