Refer to Scenario 19.3 below to answer the question(s) that follow. SCENARIO 19.3: Suppose demand for widgets is given by the equation P = 20 - 0.5Q. Originally, the price of the good is $10 per unit. When a tax of $2 per unit is imposed, the price of the good rises to $12 per unit.Refer to Scenario 19.3. Prior to the imposition of the tax consumer surplus was ________ and after the tax was imposed consumer surplus was ________.

Mary Ann and Don provide catering services in a perfectly competitive market. When they started in business, the going rate was $50 per person per meal. After the price increased to $60, they became willing to supply more meals. Their response to the price change is shown by

a. a rightward shift of the market supply curve b. a leftward shift of the market supply curve c. movement up along their firm's marginal cost curve d. movement down along their firm's marginal cost curve e. a rightward shift in their demand for jobs

Consider an economy in equilibrium, and assume no change in aggregate demand. An earthquake that destroys many factories across the country would result in a(n):

a. increase in the average price level and a decrease in real GDP. b. increase in the average price level and no change in real GDP. c. increase in the average price level and an increase in real GDP. d. decrease in the average price level and an increase in real GDP. e. decrease in the average price level and a decrease in real GDP.