Assignment 1 Questions: Week 4, 5 & 6 Q1: Illustrate an example of your choice a

Assignment 1 Questions: Week 4, 5 & 6
Q1:
Illustrate an example of your choice and discuss consumer surplus,
producer surplus, Total surplus, and deadweight loss with the help of
the graphs. [2.5 Marks]
Q2:
Calculate the consumer surplus, producer surplus, and total surplus in a
market of airplane tickets if the Equilibrium price per ticket is SAR
160, the equilibrium Quantity is 80 tickets, the upper intercept of the
demand curve on the y-axis is SAR 400 and lower intercept of the supply
curve on the y-axis is zero. What will be the dead weight loss if the
government imposes a tax of SAR 80 per ticket and the buyer and sellers
share the tax of 50 percent each? [2.5 Marks]
Q3:
What do you mean by import tariff and import quota? Take an example and
discuss the difference between tariffs and quotas with the help of
graphs. [2.5 Marks]
Q4: Provide the equation to
calculate the GDP of a nation. Explain all four factors that contribute
to the GDP calculation in detail. [2.5 Marks]