Price $5.00 - 2.00 25 45 60 75 Quantity Refer to Figure 6-7. If the government...

Question

Question

Answer 1

Answer #1

Q. If the government imposes a binding price floor of $5 in this market, what is the result?

There will be a surplus of (60 - 25)units = 35 units

Ans. A surplus of 35 units.

Q. Assume the tax was levied on the consumer. Which area represents the reduction in producer surplus?

Ans. D + E

Answer 2

Similar Homework Help Questions

Question 44 (1 point) Figure 6-3 Price $8.00 - 7.00 6.00 30 40 50 60 70...

Question 44 (1 point) Figure 6-3 Price $8.00 - 7.00 6.00 30 40 50 60 70 Quantity Refer to Figure 6-3. If the government imposes a binding price floor in this market at a price of $7.00, what is the result? a shortage of 10 units a shortage of 20 units O a surplus of 10 units O a surplus of 20 units
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.
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 3 1 pts Figure 8-1 1 Price Supply KI | Lly Demand Quantity Refer to...

Question 3 1 pts Figure 8-1 1 Price Supply KI | Lly Demand Quantity Refer to Figure 8-1. Suppose the government imposes a tax of P'P. The area measured by I+Y represents the deadweight loss due to the tax. loss in consumer surplus due to the tax. loss in producer surplus due to the tax. total surplus before the tax.
QUESTION 15 Figure 6-6 Tarice 10 20 30 40 50 60 70 80 quantity Refer to...

QUESTION 15 Figure 6-6 Tarice 10 20 30 40 50 60 70 80 quantity Refer to Figure 6-6. If the government imposes a price ceiling of $8 on this market, then there will be O a. a shortage of 10 units. O b. a shortage of 20 units. O c. no shortage. O d. a shortage of 40 units.
Figure 7-2 175 150 125 100 75 50 25 4. Refer to Figure 7-2. If the...

Figure 7-2 175 150 125 100 75 50 25 4. Refer to Figure 7-2. If the price of the good is $80, then consumer surplus amounts to a. $110. b.$135 c. $160. d. $185. 5. The quantity sold in a market will decrease if the government decreases a a. binding price floor in that market. b. binding price ceiling in that market. c. tax on the good sold in that market d. All of the above are correct.

Price of almonds P (dollars per ton) Price floor Quantity of almonds (tons) Figure 4-6 shows...

Price of almonds P (dollars per ton) Price floor Quantity of almonds (tons) Figure 4-6 shows the demand and supply curves for the almond market. The government believes that the equilibrium pr is too low and tries to help almond growers by setting a price floor at PT 5) 5) Refer to Figure 4-6. What area represents the portion of consumer surplus that has been transferred to producer surplus as a result of the price floor? А) в B) B+E...
Price Supply Q1 Q2 Quantity Refer to Figure 7-15. When the price rises from P1 to...

Price Supply Q1 Q2 Quantity Refer to Figure 7-15. When the price rises from P1 to P2, what area represents the increase in producer surplus? OA. OA+B+C. ОА+В. OG.
Question 36 Figure 6-32 Price 20 ELENTEND 10 20 30 40 50 60 70 80 100...

Question 36 Figure 6-32 Price 20 ELENTEND 10 20 30 40 50 60 70 80 100 Quantity Refer to Figure 6-32. Which of following statements is true based upon the conditions in the market? a shortage will develop when a price ceiling is imposed at a price of S10. a surplus will develop when a price floor is imposed at a price of $8. a surplus will develop when a price floor is imposed at a price of $12. a...

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...