Homework Answers
- Upward sloping curve is the supply curve
- Downward sloping curve is the demand curve
- Equilibrium price is where the demand and supply curves intersect
- Price ceiling is the highest price that the supplier can charge
- Price ceiling if higher than the equilibrium price as in case of product A is ineffective
- Price ceiling if lower than the equilibrium price as in case of product B is effective
- In case of product B, the at the ceiling price which is marked by the dotted horizontal line, the quantity demanded is Q6 and quantity supplied is Q4
- Shortage is when the Quantity supplied > Quantity Demanded
- Shortage = Quantity demanded - Quantity Supplied
- Shortage = Q6-Q4
- So option C is correct
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Ceiling Ceiling a as a 25. In the market for product B, A. there would be...
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...
Price $30 25 20 15 10 D 0 150 Quantity 50 250 In a competitive market...
Price $30 25 20 15 10 D 0 150 Quantity 50 250 In a competitive market illustrated by the diagram above, a price ceiling of $l- per unit will result in Select one .a. a surplus of f.. units O b. a surplus of fo. units .c. a shortage ofro. units d. a shortage of r.. units Refer to the provided figure. If box A represents households, B the product market, and C businesses, and if flow (F) represents revenues,...
4. Market demand is given as QD-210-3P. Market supply is given as QS competitive equilibrium, what will be the value of consumer surplus? a. $1400 2P+50. In a perfectly b. $2166 .$3267 d. $6538...
4. Market demand is given as QD-210-3P. Market supply is given as QS competitive equilibrium, what will be the value of consumer surplus? a. $1400 2P+50. In a perfectly b. $2166 .$3267 d. $6538 5. Orange juice and apple juice are substitutes. Suppose bad weather sharply reduced the orange harvest. What would the impact be? a increase consumer surplus in the market for orange juice but decrease producer surplus in the market for apple juice b. increase consumer surplus in...
1. Price ($) Quantity Demanded Quantity Supplied 0 4 0 1 2 3 4 5 6...
1. Price ($) Quantity Demanded Quantity Supplied 0 4 0 1 2 3 4 5 6 7 21 18 15 12 9 6 3 0 8 12 16 20 24 28 a. If the government set a price ceiling at $2, would there be a shortage or surplus, and how large would be the shortage/surplus? b. If the government set a price ceiling at $4, would there be a shortage or surplus, and how large would be the shortage/surplus? c....
If a price ceiling is imposed below equiibrium in the market for apartments: a. it results...
If a price ceiling is imposed below equiibrium in the market for apartments: a. it results in a surplus of rental units in the near future. b. it acts as an incentive to landlords to invest more money in their property to attract more tenants c. it results in many rental units being poorly maintained. d. it reduces the amount of housing discrimination against minorities. it reduces the resulting shortage by allowing further pice reducins 23. Ifthe minimum wage for...
PROBLEM II. In a market of a certain product, there is a monopolist with a cost...
PROBLEM II. In a market of a certain product, there is a monopolist with a cost function C(Q) = 2, while the inverse demand function is given by P)600 2Q. Compute the monopoly equilibrium quantity Qm and price Pm, Q3. The monopoly equilibrium quantity Q"is (a) Q 240 (b) Q60. (c) Q90. (dQ 180 (e) Qm 120 Q4. The monopoly equilibrium price Pm is (a) Pm 240 (b) Pm 220 (c) Pm 360 (d) Pm 420 (e) Pm 380 Q5....
Refer to Figure 6-17. A government-imposed price of $24 in this market is an example of
Refer to Figure 6-17. A government-imposed price of $24 in this market is an example of a non-binding price ceiling that creates a shortage. b. binding price floor that creates a surplus. c binding price ceiling that creates a shortage. d a non-binding price floor that creates a surplus.
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?
This assignment asks you to solve for equilibrium in a market and then look at the...
This assignment asks you to solve for equilibrium in a market and then look at the impact of a price ceiling, a price floor and a tax. The correct answers to these questions will vary across students. This is because the numerical values of some parameters are dependent on your student members. Suppose supply and demand for pizza are given by: Q" = 110 - OP QS = BP If the last digit of your student number is not 0,...
$15 $13 58 s5 o 120 134 150 165178 190 200 220 250 a.$5 b. $8...
$15 $13 58 s5 o 120 134 150 165178 190 200 220 250 a.$5 b. $8 c. $13 d. $15 e. $20 13. In the graph above, if there is a $5 price ceiling imposed, what will be the disequilibrium amount? a. There will be a shortage of 25 b. There will be a surplus of 25 There will be neither a shortage or a surplus d. c. There will be a shortage of 53 There will be a surplus...
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...
Price $30 25 20 15 10 D 0 150 Quantity 50 250 In a competitive market illustrated by the diagram above, a price ceiling of $l- per unit will result in Select one .a. a surplus of f.. units O b. a surplus of fo. units .c. a shortage ofro. units d. a shortage of r.. units Refer to the provided figure. If box A represents households, B the product market, and C businesses, and if flow (F) represents revenues,...
4. Market demand is given as QD-210-3P. Market supply is given as QS competitive equilibrium, what will be the value of consumer surplus? a. $1400 2P+50. In a perfectly b. $2166 .$3267 d. $6538 5. Orange juice and apple juice are substitutes. Suppose bad weather sharply reduced the orange harvest. What would the impact be? a increase consumer surplus in the market for orange juice but decrease producer surplus in the market for apple juice b. increase consumer surplus in...
1. Price ($) Quantity Demanded Quantity Supplied 0 4 0 1 2 3 4 5 6 7 21 18 15 12 9 6 3 0 8 12 16 20 24 28 a. If the government set a price ceiling at $2, would there be a shortage or surplus, and how large would be the shortage/surplus? b. If the government set a price ceiling at $4, would there be a shortage or surplus, and how large would be the shortage/surplus? c....
If a price ceiling is imposed below equiibrium in the market for apartments: a. it results in a surplus of rental units in the near future. b. it acts as an incentive to landlords to invest more money in their property to attract more tenants c. it results in many rental units being poorly maintained. d. it reduces the amount of housing discrimination against minorities. it reduces the resulting shortage by allowing further pice reducins 23. Ifthe minimum wage for...
PROBLEM II. In a market of a certain product, there is a monopolist with a cost function C(Q) = 2, while the inverse demand function is given by P)600 2Q. Compute the monopoly equilibrium quantity Qm and price Pm, Q3. The monopoly equilibrium quantity Q"is (a) Q 240 (b) Q60. (c) Q90. (dQ 180 (e) Qm 120 Q4. The monopoly equilibrium price Pm is (a) Pm 240 (b) Pm 220 (c) Pm 360 (d) Pm 420 (e) Pm 380 Q5....
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?
This assignment asks you to solve for equilibrium in a market and then look at the impact of a price ceiling, a price floor and a tax. The correct answers to these questions will vary across students. This is because the numerical values of some parameters are dependent on your student members. Suppose supply and demand for pizza are given by: Q" = 110 - OP QS = BP If the last digit of your student number is not 0,...
$15 $13 58 s5 o 120 134 150 165178 190 200 220 250 a.$5 b. $8 c. $13 d. $15 e. $20 13. In the graph above, if there is a $5 price ceiling imposed, what will be the disequilibrium amount? a. There will be a shortage of 25 b. There will be a surplus of 25 There will be neither a shortage or a surplus d. c. There will be a shortage of 53 There will be a surplus...
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