Question 03 Consider two different linear demand curves, A and B, passing through the same equilibrium point e1 = (Q1.p) = (30,40): p^(Q) = 100 - 2Q and p(Q) = 70 - Q. Assume that the price increases to p2 = 60. This price increase reduces the consumer surplus by... (a) $400 for demand A (b) approximately 50% for demand A (c) $450 for demand B (d) approximately 89% for demand BQuestion BE- As in queson I113, consider two different linear demand curves, A and B, passing through the same equilibrium point e1 = (-91.131} = {31140}: p'lf} = 113\"] 2G and FEM} = T Q. As in Solved Problem 9.4, consider a horizontal supply curve passing through point e1. Assume the government imposes a tax of Sin dollars on sellers and consider the welfare changes that follow. which of the following alternatives is correct? {a} For dema nd A, the tax decreases consumer surplus by 525:] {b} For demand B, the tax decreases consumer surplus by SETS {cl For demand A, the tax generates a deadweight loss of 525 {cl} For demand B, the tax generates a dead-weight loss of 525 Question ? consider the same information in question DE. But now assume that the suppl1.r curve is given by p = 11] + Q and that the govemment is imposing a higher tax on sellers equal to $13 per unit. which of the following alternatives is correct? {a} The reduction in consumer surplus is larger for demand A than for demand B {b} The reduction in consumer surplus is larger for demand B than for demand A {cl The reduction in consumer surplus is the same for demands A and B {Id} The revenue generated by this tax is the same for demands A and B