Drawing Graphs (Micro 2)

Question 1

Draw the Laffer curve

Answer 1

Question 2

Draw the Lorenz curve

Answer 2

Question 3

Draw the kuznets curve

Answer 3

Question 4

Draw the rent control graph

Answer 4

Question 5

Draw the graph of ignoring negative production externalities leads to overproduction

Answer 5

Question 6

Draw the graph of ignoring positive production externalities leads to underproduction

Answer 6

Question 7

Draw the graph of ignoring negative consumption externalities leads to overconsumption

Answer 7

Question 8

Draw the graph of ignoring positive consumption externalities leads to under consumption

Answer 8

Question 9

Draw the graph of price control: maximum price

Answer 9

Question 10

Draw the graph of price control: minimum price

Answer 10

Question 11

Draw the graphs of the consequences of discrimination

Answer 11

Question 12

In the externality diagrams what does “over” infer?

Answer 12

There will be welfare loss

Question 13

In the externality diagrams what does “under” infer?

Answer 13

There will be potential welfare gain

Question 14

In the externality diagrams what does “production” infer?

Answer 14

The conjoined line is the benefits and it will be downward sloping (like a demand curve)

Question 15

In the externality diagrams what does “consumption” infer?

Answer 15

The conjoined line will be costs
The line is upwards sloping (like a supply curve)