Homework Answers
Ans. Option b
Price Ceiling is the maximum price that a seller could charge from the buyer.
In the given figure, the Quantity demanded is Q3 where the
horizontal line from G intersects the demand curve D at point
I.
The quantity supplied is Q2 where the horizontal line intersects
the supply curve S at point F.
As the quantity demanded is greater than the quantity supplied so the excess demand is equal to( Q3 minus Q2) .In Other words, the excess demand is equal to the distance between point F and I.
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Refer to the figure below. 0 Q2 Q Q3 Quantity If a price ceiling were imposed...
QUESTION 14 Price points Q2 Q3 Quantit Refer to the diagram above. Assume that a price...
QUESTION 14 Price points Q2 Q3 Quantit Refer to the diagram above. Assume that a price ceiling is imposed at point G, le, the price is now represented by the distance OG. Ale the price ceiling is imposed, consumer surplus_ and is now represented by the area decreases; BJEH increases; BAEH decreases; JAE increases, GAEF does not change; BAC QUESTION 15 Price Supply Pc Demand Q1 Q2 Q3 Quantity Refer to the diagram above. After the imposition of an effective...
QUESTION 3 Figure Price Supply P K I P" P B M N Demand Quantity Refer...
QUESTION 3 Figure Price Supply P K I P" P B M N Demand Quantity Refer to Figure. If the government imposes a tax size of P- P" in the above market then the area L+M+Y represents a. consumer surplus after the tax. producer surplus after the tax. Cconsumer surplus before the tax. producer surplus before the tax. QUESTION 4 4 point Figure Supply Dennd Quantity Q1 02 Q3 Q Qs Refer to Figure. If the government impose a tax...
Question 1 Given the following diagram, answer questions 1.1 to 1.3: Price Q3 QEQo Q2 04...
Question 1 Given the following diagram, answer questions 1.1 to 1.3: Price Q3 QEQo Q2 04 Quantity 1.1 P2 represents a price imposed by the government. What is the quantity of this good that would be exchanged in the market? A) Q. B) O C) D) Q3 E) Q. 1.2 To be effective, a price floor must lie A) above P, but below P. B) below P, but above P, C) anywhere above P, D) anywhere below P. E) within...
Figure 14-14 (a) MC (b) SOS1 D1 DO Q2 Q3 Quantity QW Q YOX Q2 Quantity...
Figure 14-14 (a) MC (b) SOS1 D1 DO Q2 Q3 Quantity QW Q YOX Q2 Quantity Refer to Figure 14-14. Assume that the market starts in equilibrium at point W in panel (b) and that panel (a) illustrates the cost curves facing individual firms. Suppose that demand increases from DO to D1. Which of the following statements is not correct? a. Point W is a long-run equilibrium point. O b. Points W, Y, and Z are short-run equilibria points. O...
1. Consider the following figure. If a price ceiling of $180 is imposed, how much is...
1. Consider the following figure. If a price ceiling of $180 is
imposed, how much is the quantity demanded? Also, calculate the
amount of shortage.
2. Consider the following figure. Tax is levied on sellers. Find
an expression for the tax burden on buyers. Also, find the areas
that represent DWL.
3. Refer to the following table. The price of erasers increases
from $1.50 to $2.00 per eraser. Using the midpoint method, what is
the cross-price elasticity of demand between...
Refer to Figure 5.2. An example of an effective price ceiling would be if the government set rental rates for apartments at
25. Refer to Figure 5.2. An example of an effective price ceiling would be if the government set rental rates for apartments at a $700 b.$600 c. $400. d.$500.26. Refer to Figure 5.2. At the effective (binding) price ceiling: a quantity supplied exceeds quantity demanded b. demand exceeds supply c. supply exceeds demand d. quantity demanded exceeds quantity supplied 27. Refer to Figure 5.2. At the effective (binding) price ceiling a. the price will remain constant because the market is in equilibrium. b. the price will increase because...
100,000 150,000 175,000 Quantity Refer to Figure 3. Suppose a rent ceiling is imposed in Statesboro...
100,000 150,000 175,000 Quantity Refer to Figure 3. Suppose a rent ceiling is imposed in Statesboro by the Mayor of Statesboro. Assume that prior to the price ceiling the equilibrium price for rents was $900 - P2. However, he imposes the rent ceiling of $600 - P1. Georgia Southern University authorities have argued against this rent ceiling because they expect this to cause a black market rental rate to rise to $$1,100 = P3. They suspect that this will transfer...
Refer to the figure below. If the government sets a price ceiling of $8, consumers would...
Refer to the figure below. If the government sets a price
ceiling of $8,
consumers would demand 12 units.
there would be a shortage of 12 units.
there would be an excess supply of 4 units.
18 16 14 12 10 8 4 2 4 6 8 10 12 14 16 18
PRICE Demand Q2 Q1 QUANTITY Refer to Figure 5-4. Total revenue when the price is P...
PRICE Demand Q2 Q1 QUANTITY Refer to Figure 5-4. Total revenue when the price is P 1 is represented by a. areas A+B. b. areas C+D. C. area D. d. areas B+D. ESTION 11 Which of the following could be the price elasticity of demand for a good for which a decrease in price would increase total revenue? a. 2.8 o 6.0.3 C. 3.6 d. 1 PRICE Demand Q2 Q1 QUANTITY Refer to Figure 5-4. If rectangle D is larger...
Refer to the graph shown. An effective price ceiling at Pc imposes a deadweight loss shown...
Refer to the graph shown. An effective price ceiling at Pc imposes a deadweight loss shown by Price Supply Demand Q2 01 Q3 Quantity O rectangles B and C O rectangles A and D O triangles E and F O rectangle B and triangle E の
QUESTION 14 Price points Q2 Q3 Quantit Refer to the diagram above. Assume that a price ceiling is imposed at point G, le, the price is now represented by the distance OG. Ale the price ceiling is imposed, consumer surplus_ and is now represented by the area decreases; BJEH increases; BAEH decreases; JAE increases, GAEF does not change; BAC QUESTION 15 Price Supply Pc Demand Q1 Q2 Q3 Quantity Refer to the diagram above. After the imposition of an effective...
QUESTION 3 Figure Price Supply P K I P" P B M N Demand Quantity Refer to Figure. If the government imposes a tax size of P- P" in the above market then the area L+M+Y represents a. consumer surplus after the tax. producer surplus after the tax. Cconsumer surplus before the tax. producer surplus before the tax. QUESTION 4 4 point Figure Supply Dennd Quantity Q1 02 Q3 Q Qs Refer to Figure. If the government impose a tax...
Question 1 Given the following diagram, answer questions 1.1 to 1.3: Price Q3 QEQo Q2 04 Quantity 1.1 P2 represents a price imposed by the government. What is the quantity of this good that would be exchanged in the market? A) Q. B) O C) D) Q3 E) Q. 1.2 To be effective, a price floor must lie A) above P, but below P. B) below P, but above P, C) anywhere above P, D) anywhere below P. E) within...
Figure 14-14 (a) MC (b) SOS1 D1 DO Q2 Q3 Quantity QW Q YOX Q2 Quantity Refer to Figure 14-14. Assume that the market starts in equilibrium at point W in panel (b) and that panel (a) illustrates the cost curves facing individual firms. Suppose that demand increases from DO to D1. Which of the following statements is not correct? a. Point W is a long-run equilibrium point. O b. Points W, Y, and Z are short-run equilibria points. O...
1. Consider the following figure. If a price ceiling of $180 is
imposed, how much is the quantity demanded? Also, calculate the
amount of shortage.
2. Consider the following figure. Tax is levied on sellers. Find
an expression for the tax burden on buyers. Also, find the areas
that represent DWL.
3. Refer to the following table. The price of erasers increases
from $1.50 to $2.00 per eraser. Using the midpoint method, what is
the cross-price elasticity of demand between...
100,000 150,000 175,000 Quantity Refer to Figure 3. Suppose a rent ceiling is imposed in Statesboro by the Mayor of Statesboro. Assume that prior to the price ceiling the equilibrium price for rents was $900 - P2. However, he imposes the rent ceiling of $600 - P1. Georgia Southern University authorities have argued against this rent ceiling because they expect this to cause a black market rental rate to rise to $$1,100 = P3. They suspect that this will transfer...
Refer to the figure below. If the government sets a price
ceiling of $8,
consumers would demand 12 units.
there would be a shortage of 12 units.
there would be an excess supply of 4 units.
18 16 14 12 10 8 4 2 4 6 8 10 12 14 16 18
PRICE Demand Q2 Q1 QUANTITY Refer to Figure 5-4. Total revenue when the price is P 1 is represented by a. areas A+B. b. areas C+D. C. area D. d. areas B+D. ESTION 11 Which of the following could be the price elasticity of demand for a good for which a decrease in price would increase total revenue? a. 2.8 o 6.0.3 C. 3.6 d. 1 PRICE Demand Q2 Q1 QUANTITY Refer to Figure 5-4. If rectangle D is larger...
Refer to the graph shown. An effective price ceiling at Pc imposes a deadweight loss shown by Price Supply Demand Q2 01 Q3 Quantity O rectangles B and C O rectangles A and D O triangles E and F O rectangle B and triangle E の
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