Homework Answers
Since price floor is the legal minimum price set by government. It is imposed above equilibrium price. So it leads to surplus in the market. Hence excess supply leads to decrease in the price until equilibrium price is attained. At the same time quantity demanded will increase and quantity supplied will decrease.
It means all of the above options are correct.
Hence option fourth is the correct answer.
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If at the current market price there is a surplus of widgets, which of the following...
Suppose the current price in a market is below the equilibrium price. Af the current price...
Suppose the current price in a market is below the equilibrium price. Af the current price in the market ea. a shortage exists. Ob. a surplus exists. o . c. equilibrium exists d. disequilibrium exists in the market. ee.a and d The equilibrium price in a market is $10 and the equilibrium quantity is 100 units. The area of consumers surplus is Oa. the area above the supply curve, out to 100 units, and below $10. Ob. the area below...
40) At the current price there is a surplus of the product. We would expect price...
40) At the current price there is a surplus of the product. We would expect price to Odecrease, quantity demanded to decrease, and quantity supplied to increase increase, quantity demanded to decrease, and quantity supplied to increase increase, quantity demanded to increase, and quantity supplied to decrease Odecrease, quantity demanded to increase, and quantity supplied to decrease
At the current price, the quantity demanded is (greater or less) than the quantity supplied. This...
At the current price, the quantity demanded is (greater
or less) than the quantity supplied. This means that the
market is currently experiencing a (surplus or
shortage). In order to adjust, the market price will
(decrease or increase) until the quantity demanded
and quantity supplied are equal. The result is an equilibrium
quantity of ________ and an equilibrium price of $
_________.
Back to Assignment Attempts: Average: 1 1. Working Numbers and Graphs Q1 Suppose the current price of a...
9. Equilibrium in the bond market The following graph shows a bond market in equilibrium at...
9. Equilibrium in the bond market
The following graph shows a bond market in equilibrium at a bond
price of $5.
Use the following graph input tool to answer the questions that
follow. (Note: You will not be graded on any adjustments you make
to the graph.)
Suppose the bond price has
changed to $2, creating a ____________( surplus / shortage
) of ______________
million bonds. (Hint: Enter the new price in the “Current Price”
field to see the changes...
22. Consider two imaginary goods, widgets and gadgets. The cross-price elasticity of demand for widgets with respec...
22. Consider two imaginary goods, widgets and gadgets. The cross-price elasticity of demand for widgets with respect to the price of gadgets is +0.5. This tells us that widgets and gadgets are a. Compliments b. Substitutes c. Unrelated in consumption For this condition to hold, 23. Assume that the market demand for widgets is perfectly inelastic. a. There must be no good substitute for widgets, and widgets must be a normal good. b. There must be no good substitute for...
Problem Setup Analyze the following three scenarios (A, B, and C) describing the market for widgets....
Problem Setup Analyze the following three scenarios (A, B, and C) describing the market for widgets. Think of Scenario A as the baseline situation, with B and C representing possible changes in the market. Scenario A ● The market (aggregate) demand for widgets is P = 100 – 4Q, where Q is the quantity of widgets demanded. ● The market (aggregate) supply of widgets is P = 10 + 5Q, where Q is the quantity of widgets supplied. Scenario B...
Price Refer to Figure 6.4. Suppose that the current price is set at B and Q, units of a good are traded. Which of the f...
Price Refer to Figure 6.4. Suppose that the current price is set at B and Q, units of a good are traded. Which of the following statements is incorrect? Supply curve O A. Total surplus would decrease should the price fall. OB. The quantity demanded equals the quantity supplied. OC. The current market transaction is efficient. O D. Total surplus would increase should the price rise. Demand curve & Q3 Quantity Figure 6.4
Which of the following is evidence of a surplus of bananas?
Which of the following is evidence of a surplus of bananas?A) Firms raise the price of bananas. B) The price of bananas is lowered in order to increase sales. C) The equilibrium price of bananas rises due to an increase in demand. D) The quantity of bananas demanded is greater than the quantity supplied.
Analyze the following three scenarios (Efficient, A, and B) describing the market for widgets. ● Consider...
Analyze the following three scenarios (Efficient, A, and B) describing the market for widgets. ● Consider the market for widgets, consumers have a market (aggregate) marginal benefit curve of MB = 90 – 2Q. The supplier(s) in that market have a market (aggregate) marginal cost curve of MC = 4Q. Efficient Outcome ● Use the marginal benefit and marginal cost equations given above to determine the efficient quantity (Q*) and the joint surplus (JS*) based on that quantity. Equilibrium with...
uestion 2 Refer to the following figure. At a market price of $4, which of following...
uestion 2 Refer to the following figure. At a market price of $4, which of following conditions exist? $5 6 Demand 0 1 2 3 4 5 6 7 8 Quantity Demanded in thousands) A. Shortage B. Surplus C. Equilibrium D. None of the above
Suppose the current price in a market is below the equilibrium price. Af the current price in the market ea. a shortage exists. Ob. a surplus exists. o . c. equilibrium exists d. disequilibrium exists in the market. ee.a and d The equilibrium price in a market is $10 and the equilibrium quantity is 100 units. The area of consumers surplus is Oa. the area above the supply curve, out to 100 units, and below $10. Ob. the area below...
40) At the current price there is a surplus of the product. We would expect price to Odecrease, quantity demanded to decrease, and quantity supplied to increase increase, quantity demanded to decrease, and quantity supplied to increase increase, quantity demanded to increase, and quantity supplied to decrease Odecrease, quantity demanded to increase, and quantity supplied to decrease
At the current price, the quantity demanded is (greater
or less) than the quantity supplied. This means that the
market is currently experiencing a (surplus or
shortage). In order to adjust, the market price will
(decrease or increase) until the quantity demanded
and quantity supplied are equal. The result is an equilibrium
quantity of ________ and an equilibrium price of $
_________.
Back to Assignment Attempts: Average: 1 1. Working Numbers and Graphs Q1 Suppose the current price of a...
9. Equilibrium in the bond market
The following graph shows a bond market in equilibrium at a bond
price of $5.
Use the following graph input tool to answer the questions that
follow. (Note: You will not be graded on any adjustments you make
to the graph.)
Suppose the bond price has
changed to $2, creating a ____________( surplus / shortage
) of ______________
million bonds. (Hint: Enter the new price in the “Current Price”
field to see the changes...
22. Consider two imaginary goods, widgets and gadgets. The cross-price elasticity of demand for widgets with respect to the price of gadgets is +0.5. This tells us that widgets and gadgets are a. Compliments b. Substitutes c. Unrelated in consumption For this condition to hold, 23. Assume that the market demand for widgets is perfectly inelastic. a. There must be no good substitute for widgets, and widgets must be a normal good. b. There must be no good substitute for...
Price Refer to Figure 6.4. Suppose that the current price is set at B and Q, units of a good are traded. Which of the following statements is incorrect? Supply curve O A. Total surplus would decrease should the price fall. OB. The quantity demanded equals the quantity supplied. OC. The current market transaction is efficient. O D. Total surplus would increase should the price rise. Demand curve & Q3 Quantity Figure 6.4
uestion 2 Refer to the following figure. At a market price of $4, which of following conditions exist? $5 6 Demand 0 1 2 3 4 5 6 7 8 Quantity Demanded in thousands) A. Shortage B. Surplus C. Equilibrium D. None of the above
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