Homework Answers
Ans: Supply will decrease.
Explanation:
- Maximum surplus is only achieved at equilibrium. So, first option is correct.
- As price is less than equilibrium price, producer surplus will definitely decrease. So, second option is correct.
- As price decreases, quantity supplied will decrease, not only supply. So, third option is incorrect.
- Definitely consumer will purchase less than equilibrium quantity, because there is a shortage of goods. So, fourth option is correct.
- Definitely producer will sell less at lower price. So, fifth option is correct.
Add Answer to:
a decrease in supply and an increase in quantity demanded. O an increase in supply and...
Refer to the table above. If the market is originally in equilibrium and a price ceiling...
Refer to the table above. If the market is originally in
equilibrium and a price ceiling of $50 is imposed, which of the
following is incorrect?
A. Net surplus in the economy will decrease
B. Producer surplus will decrease
C. Supply will decrease
D. Consumers will purchase less than they would at the
equilibrium price
E. Producers will sell less than they would at the equilibrium
price
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Refer to the graph below for questions 7-9: Price Supply 15 12 Demand 40 50 80...
Refer to the graph below for questions 7-9: Price Supply 15 12 Demand 40 50 80 104 130 Quantity Suppose the market in the graph is originally in equilibrium at a price of $15. If the government implements a price ceiling at $20, what will be the market outcome? 7. a. Surplus of 90 units b. Surplus of 54 units c. Shortage of 90 units d. Shortage of 54 units e. Market will remain in equilibrium with a quantity of...
Suppose demand and supply are given by Qd = 50 - P and Qs = 0.5P -...
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Figure 3.6 Price 100 200 30000 500 Quantity Assume that the market described by the demand...
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Macroeconomics d. Did the increase in production costs cause a "decrease in supply" or a "decrease...
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fill in the blanks 1)increase/decrease 2)increase/decrease 3)gain/loss Consider the Sudanese market for tangerines. The...
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Use the accompanying graph to answer these questions.
a. Suppose demand is D and supply is S0. If a price
ceiling of $6 is imposed, what are the resulting shortage and full
economic price?
Shortage:
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b. Suppose demand is D and supply is S0. If a price
floor of $12 is imposed, what is the resulting surplus? What is the
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Surplus: units
Cost to government: $...
Refer to the table above. If the market is originally in
equilibrium and a price ceiling of $50 is imposed, which of the
following is incorrect?
A. Net surplus in the economy will decrease
B. Producer surplus will decrease
C. Supply will decrease
D. Consumers will purchase less than they would at the
equilibrium price
E. Producers will sell less than they would at the equilibrium
price
Supply P* Gi Demand Qd Qs Quantity
40. S1 D1 Quantity Refer to the diagram, in which SI and DI represent the original supply and demand curves and $2 and D2 the new curves. In this market increase in demand has been more than offset by an increase in supply point M shows the new equilibrium position. C) the new equilibrium price and quantity are both greater than originally D) the equilibrium position has shifted from M to K 41. Producer surplus is the difference between A)...
Refer to the graph below for questions 7-9: Price Supply 15 12 Demand 40 50 80 104 130 Quantity Suppose the market in the graph is originally in equilibrium at a price of $15. If the government implements a price ceiling at $20, what will be the market outcome? 7. a. Surplus of 90 units b. Surplus of 54 units c. Shortage of 90 units d. Shortage of 54 units e. Market will remain in equilibrium with a quantity of...
The table below shows the market for mandarin oranges in the country of Preswar Price per Kilo Quantity Demanded Quantity Supplied 400 0.8 200 0.9 350 250 1.0 300 300 350 1.1 250 1.2 200 400 450 1.3 150 1.4 100 500 50 550 1.5 a) What are the equilibrium values of price and quantity? Round your answers to one decimal place Price Quantity: b) Suppose that government imposes a effective price floor that is $0.1 different from the present...
Figure 3.6 Price 100 200 30000 500 Quantity Assume that the market described by the demand and supply curves in Figure 3.6 is originally in equilibrium. What is the most likely consequence of a government-imposed price ceiling at $10 per unit? Seleceone a. Quantity supplied will decrease b. There will be a surplus of the good Demand will increase. There will be no consequence at all Seeply will decrease
Macroeconomics
d. Did the increase in production costs cause a "decrease in supply" or a "decrease in quantity supplied"? 3. Refer to the following expanded table from review question 8. LO3.4 a. What is the equilibrium price? At what price is there neither a shortage nor a surplus? Fill in the surplus-shortage column and use it to confirm your answers. b. Graph the demand for wheat and the supply of wheat. Be sure to label the axes of your graph...
fill in the blanks
1)increase/decrease
2)increase/decrease
3)gain/loss
Consider the Sudanese market for tangerines. The following graph shows the domestic demand and domestic supply curves for tangerines in Sudan. Suppose Sudan's government currently does not allow international trade in tangerines. Use the black point (plus symbol) to indicate the equilibrium price of a ton of tangerines and the equilibrium quantity of tangerines in Sudan in the absence of international trade. Then, use the green triangle (triangle symbol) to shade the area...
Use the accompanying graph to answer these questions.
a. Suppose demand is D and supply is S0. If a price
ceiling of $6 is imposed, what are the resulting shortage and full
economic price?
Shortage:
Full economic price: $
b. Suppose demand is D and supply is S0. If a price
floor of $12 is imposed, what is the resulting surplus? What is the
cost to the government of purchasing any and all unsold
units?
Surplus: units
Cost to government: $...
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