Homework Answers
Ans 1)
When price ceiling is placed then goods are available in low price than equilibrium price
Ans b)
Due to price ceiling lower than equilibrium quantity demanded is higher than quantity supplied therefore shortage is seen in market
As shortage will impose upward pressure on price hence in long run market will be at equilibrium.
Ans c)
Area C+ Area H is Deadweight loss
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7. The following graph represents the market for baseball tickets. Assume the government places ceiling of...
8. The following graph represents the market for donuts. Suppose the government implements a price ceiling...
8. The following graph represents the market for donuts. Suppose the government implements a price ceiling of $5 per box of a dozen donuts. (4 pts.) Price Market for Donuts $6.50 $5.00 ---- 361 Quantity (dozen) a. What price will suppliers sell a box a dozen donuts? b. Will the market have a shortage or surplus of donuts? Or, will the market remain in equilibrium? C. Was the price ceiling effective? d. Is the market for donuts efficient?
No Spacing Title 7. The following graph represents a market with an externality Assume there is no government Inter...
No Spacing Title 7. The following graph represents a market with an externality Assume there is no government Intervention. (6 pts.) Price $450 $350 $300 a. Is this an example of a negative or positive externality? What quantity will be produced in the market? What price will the market sell each unt? d. Calculate the extem benefit per unit at the quantity that that is being produced in the market .. What is the officent quantity to produce # Using...
QUESTION 4 Suppose instead that the government places a price ceiling at $3 in the coffee...
QUESTION 4 Suppose instead that the government places a price ceiling at $3 in the coffee market (graph is replicated below). NO 20 40 60 80 100 Q The new price in the market will be and the new quantity will be . This will result in a (surplus/shortage) units
if government were to impose a price ceiling or 6, which statement is correct Question 19...
if government were to impose a price ceiling or 6, which
statement is correct
Question 19 1 pts If the government were to impose a price celling of s6, which statement is correct sis ZS12 $6 $3 10 20 30 50 QUANTITY 0 There would be a shortage of 20 units and a deadweight loss of 30 O There would be a surplus of 20 units and Consumer Surplus will be smaller than before the price ceiling The price ceiling...
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...
The graph accompanying this question show the market for gadgets.
The graph accompanying this question show the market for gadgets. The government is considering intervening in this market. a) Calculate the producer surplus at the market equilibrium price and quantity. Show your work. b) If the government imposes a price ceiling at $24, is there a shortage, surplus, or neither? Explain. c) If instead the government imposes a price floor at $28, is there a shortage, surplus, or neither? Explain. d) If instead the government restricts market output to 14 units, calculate the deadweight...
PART III - QUANTITAYIVE QUESTIONS Answer ALL the following questions. Show any work and calculation. No...
PART III - QUANTITAYIVE QUESTIONS Answer ALL the following questions. Show any work and calculation. No marks will be allocated for answers without work. 1. Halloween costumes are becoming more popular as we are getting closer to Halloween. The domestic demand and supply for Halloween costumes in Canada are given by the following equations, where is the quantity of Halloween costumes and P is the price of Halloween costumes: P = 80 - (1/500) Q and P - 20 +...
1. The graph below represents the market for electric cars. If a price floor is set...
1. The graph below represents the market for electric cars. If a
price floor is set at $92,000, calculate the surplus of cars that
will result.
____ # of electric cars, please provide your explanation so that
I can apply it to future problems.
2.) Government intervention of setting price controls impacts
the __________________. As a result, when a price floor is set, a
very likely outcome is a ______________ in the market.
market equilibrium; surplus
market equilibrium; shortage
supply...
The following graph represents a market with an externality. Assume there is no government intervention. (6 pts.) 8. Pr...
The following graph represents a market with an externality. Assume there is no government intervention. (6 pts.) 8. Price MSC $210 МPC $200 $197 D MSB Quantity 500 600 700 Is this an example of a negative or positive externality? a. b. What quantity will be produced in the market? What price will the market sell each unit? C. Calculate the external cost per unit at the quantity that that is being produced in the market d. What is the...
Suppose Price Control B is imposed as a price ceiling. Characterize the situation in the market...
Suppose Price Control B is imposed as a price ceiling. Characterize the situation in the market by selecting all of the correct responses below: Price (S) Price Control B is O A. a binding price ceiling. O B. a non-binding price ceiling. When Price Control B is imposed as a price ceiling. O A. the quantity sold in the market will be equal to the equilibrium quantity OB. the quantity sold in the market will be less than the equilibrium...
8. The following graph represents the market for donuts. Suppose the government implements a price ceiling of $5 per box of a dozen donuts. (4 pts.) Price Market for Donuts $6.50 $5.00 ---- 361 Quantity (dozen) a. What price will suppliers sell a box a dozen donuts? b. Will the market have a shortage or surplus of donuts? Or, will the market remain in equilibrium? C. Was the price ceiling effective? d. Is the market for donuts efficient?
No Spacing Title 7. The following graph represents a market with an externality Assume there is no government Intervention. (6 pts.) Price $450 $350 $300 a. Is this an example of a negative or positive externality? What quantity will be produced in the market? What price will the market sell each unt? d. Calculate the extem benefit per unit at the quantity that that is being produced in the market .. What is the officent quantity to produce # Using...
QUESTION 4 Suppose instead that the government places a price ceiling at $3 in the coffee market (graph is replicated below). NO 20 40 60 80 100 Q The new price in the market will be and the new quantity will be . This will result in a (surplus/shortage) units
if government were to impose a price ceiling or 6, which
statement is correct
Question 19 1 pts If the government were to impose a price celling of s6, which statement is correct sis ZS12 $6 $3 10 20 30 50 QUANTITY 0 There would be a shortage of 20 units and a deadweight loss of 30 O There would be a surplus of 20 units and Consumer Surplus will be smaller than before the price ceiling The price ceiling...
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...
PART III - QUANTITAYIVE QUESTIONS Answer ALL the following questions. Show any work and calculation. No marks will be allocated for answers without work. 1. Halloween costumes are becoming more popular as we are getting closer to Halloween. The domestic demand and supply for Halloween costumes in Canada are given by the following equations, where is the quantity of Halloween costumes and P is the price of Halloween costumes: P = 80 - (1/500) Q and P - 20 +...
1. The graph below represents the market for electric cars. If a
price floor is set at $92,000, calculate the surplus of cars that
will result.
____ # of electric cars, please provide your explanation so that
I can apply it to future problems.
2.) Government intervention of setting price controls impacts
the __________________. As a result, when a price floor is set, a
very likely outcome is a ______________ in the market.
market equilibrium; surplus
market equilibrium; shortage
supply...
The following graph represents a market with an externality. Assume there is no government intervention. (6 pts.) 8. Price MSC $210 МPC $200 $197 D MSB Quantity 500 600 700 Is this an example of a negative or positive externality? a. b. What quantity will be produced in the market? What price will the market sell each unit? C. Calculate the external cost per unit at the quantity that that is being produced in the market d. What is the...
Suppose Price Control B is imposed as a price ceiling. Characterize the situation in the market by selecting all of the correct responses below: Price (S) Price Control B is O A. a binding price ceiling. O B. a non-binding price ceiling. When Price Control B is imposed as a price ceiling. O A. the quantity sold in the market will be equal to the equilibrium quantity OB. the quantity sold in the market will be less than the equilibrium...
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