Homework Answers
Answer: ( D)
Since here price ceiling is below the equilibrium level of price. Hence, price control is effective here. thus, there would be deadweight loss or both consumer surplus and producer surplus would decrease.
Eventually, total surplus would decrease here.
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If the government imposes a maximum price in a market that is below the equilibrium price:...
Ceteris paribus, if demand and supply both increase at the same time, equilibrium price and equilibrium...
Ceteris paribus, if demand and supply both increase at the same time, equilibrium price and equilibrium quantity_ a. increases; may rise, fall, or stay the same, depending on the size of the two shifts. decreases; may rise, fall, or stay the same, depending on the size of the two shifts. c. may rise, fall, or stay the same, depending on the size of the two shifts; increases may rise, fall, or stay the same, depending on the size of the...
. A black market may occur when A) the government imposes a price ceiling above the...
. A black market may occur when A) the government imposes a price ceiling above the market clearing price. B) the government imposes a price floor below the market clearing price. C) the government imposes a price ceiling below the market clearing price. D) the government does not impose either a price ceiling or a price floor.
CS AND PS Price Controls for Medical Care. Consider a town where the equilibrium price of...
CS AND PS Price Controls for Medical Care. Consider a town where the equilibrium price of a doctor's visit is $60 and the equilibrium quantity supplied is 90 patient visits per hour. For suppliers (doctors), each $1 increase in price increases the quantity supplied by two visits. For consumers, each $1 increase in price decreases the quantity demanded by one visit. Suppose that in an attempt to control the rising costs of medical care the government imposes price controls, setting...
Then assume the government imposes a price floor of p2. How does this affect the market?
Consider the market for soybeans illustrated in the figure below. Assume the market is initially in equilibrium at point A. Then assume the government imposes a price floor of p2. How does this affect the market?The price floor results in an equilibrium where supply equals demand. The price floor results in a surplus of corn. The price floor is not binding and has no effect The price floor results in a shortage of corn
Question 29 The market equilibrium is at price $11/hour. The government imposes a minimum wage of...
Question 29 The market equilibrium is at price $11/hour. The government imposes a minimum wage of $14. The new equilibrium will be ? A. Not binding and we will have neither a surplus nor a shortage. B. Binding and we will have a surplus. C.Not binding and we will have a shortage D.Binding and we will have a shortage.
If the government imposes a price ceiling above the equilibrium price, then the equilibrium price will...
If the government imposes a price ceiling above the equilibrium price, then the equilibrium price will a) rise Ob) fall c) remain the same O d) double
Suppose the government imposes a price floor of $28 in the market. If the sellers with...
Suppose the government imposes a price floor of $28 in the
market. If the sellers with the lowest cost are the ones who sell
the good and the government does not purchase any excess units
produced, then the total surplus will be
a. $400
b. $800
c. $1,120
d. $1,184
+ 16+ **** 12+ 8 8 16 24 32 40 48 56 64 72 80 88 96 Q
Figure 16.3 depicts a market for electricity. S, is the supply curve without external costs. S,...
Figure 16.3 depicts a market for electricity. S, is the supply curve without external costs. S, is the supply curve with the $T tax. Assume electricity production incurs external costs. If the government imposes a pollution tax of $T per mega kilowatt: Figure 16.3 Price per mega watt ($) O OS O A. the equilibrium price of electricity decreases, but the equilibrium output increases. O B. the equilibrium price of electricity increases, but the equilibrium output decreases O c. both...
QUESTION 15 If the market equilibrium for wages is $8/hr, and the government imposes a minimum...
QUESTION 15 If the market equilibrium for wages is $8/hr, and the government imposes a minimum wage of $10/hr, it will result in A. an increase in social welfare. B. social justice. C. an economic boom. D. a benefit for all workers. E. surplus labor (unemployment), CUESTION 15
In Figure 8.9, the market equilibrium output and price of the bread market is shown to...
In Figure 8.9, the market equilibrium output and price of the
bread market is shown to be at (Q, P) = (5,000,
€2). Suppose that the mayor requires bakeries to sell as much bread
as consumers want, at a price of €1.50.
Which of the following statements are correct? [Select all
correct answers}.
A).The producer surplus increases but the consumer surplus
decreases.
B).The consumer surplus increases but the producer surplus
decreases.
C).The total surplus is lower than at the market...
Ceteris paribus, if demand and supply both increase at the same time, equilibrium price and equilibrium quantity_ a. increases; may rise, fall, or stay the same, depending on the size of the two shifts. decreases; may rise, fall, or stay the same, depending on the size of the two shifts. c. may rise, fall, or stay the same, depending on the size of the two shifts; increases may rise, fall, or stay the same, depending on the size of the...
. A black market may occur when A) the government imposes a price ceiling above the market clearing price. B) the government imposes a price floor below the market clearing price. C) the government imposes a price ceiling below the market clearing price. D) the government does not impose either a price ceiling or a price floor.
CS AND PS Price Controls for Medical Care. Consider a town where the equilibrium price of a doctor's visit is $60 and the equilibrium quantity supplied is 90 patient visits per hour. For suppliers (doctors), each $1 increase in price increases the quantity supplied by two visits. For consumers, each $1 increase in price decreases the quantity demanded by one visit. Suppose that in an attempt to control the rising costs of medical care the government imposes price controls, setting...
Question 29 The market equilibrium is at price $11/hour. The government imposes a minimum wage of $14. The new equilibrium will be ? A. Not binding and we will have neither a surplus nor a shortage. B. Binding and we will have a surplus. C.Not binding and we will have a shortage D.Binding and we will have a shortage.
If the government imposes a price ceiling above the equilibrium price, then the equilibrium price will a) rise Ob) fall c) remain the same O d) double
Suppose the government imposes a price floor of $28 in the
market. If the sellers with the lowest cost are the ones who sell
the good and the government does not purchase any excess units
produced, then the total surplus will be
a. $400
b. $800
c. $1,120
d. $1,184
+ 16+ **** 12+ 8 8 16 24 32 40 48 56 64 72 80 88 96 Q
Figure 16.3 depicts a market for electricity. S, is the supply curve without external costs. S, is the supply curve with the $T tax. Assume electricity production incurs external costs. If the government imposes a pollution tax of $T per mega kilowatt: Figure 16.3 Price per mega watt ($) O OS O A. the equilibrium price of electricity decreases, but the equilibrium output increases. O B. the equilibrium price of electricity increases, but the equilibrium output decreases O c. both...
QUESTION 15 If the market equilibrium for wages is $8/hr, and the government imposes a minimum wage of $10/hr, it will result in A. an increase in social welfare. B. social justice. C. an economic boom. D. a benefit for all workers. E. surplus labor (unemployment), CUESTION 15
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