Homework Answers
Answer
Option 2
equilibrium quantity
The price floor is a minimum price a producer can charge and the price should be above equilibrium to be binding as the price floor is non-binding means it is below equilibrium so the price does not affect the market outcome and the outcome is equilibrium quantity.
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A nonbinding price floor leads to an): O quantity of zero units. O equilibrium quantity. shortage....
If a price floor is set below the equilibrium price in a market: A) a shortage...
If a price floor is set below the equilibrium price in a market: A) a shortage of results. B) a surplus results. C) the equilibrium price cannot be reached. D) there is no impact on the market.
If quantity supplied equals 85 units and quantity demanded equals 80 units under a price control,...
If quantity supplied equals 85 units and quantity demanded equals 80 units under a price control, then it is a: A. binding price ceiling. B. binding price floor. C. nonbinding price ceiling. D. nonbinding price floor.
In a market if price is above the equilibrium: O a shortage will result and there...
In a market if price is above the equilibrium: O a shortage will result and there will be downward pressure on prices. a surplus will result and there will be upward pressure on prices. O a shortage will result and there will be upward pressure on prices. O a surplus will result and there will be downward pressure on prices.
Compare a market operating at a quantity lower than equilibrium (ie. a price floor) with the...
Compare a market operating at a quantity lower than equilibrium (ie. a price floor) with the same market operating at the equilibrium quantity. Which of the following statements are true? 1. A price floor will increase the producer and total surplus. 2. It is unclear if the consumer surplus is greater or less at the market operating below equilibrium. 3. A market operating below equilibrium will transfer some producer surplus to consumers 4. A market operating below equilibrium will transfer...
In the absence of any price controls, the market will reach equilibrium at a price at
In the absence of any price controls, the market will reach equilibrium at a price at a $200 and a quantity of 600 b. $300 and a quantity of 500. c. $400 and a quantity of 400. d $500 and a quantity of 300 If government established a price floor of $200 in this market: a. there would be a shortage of 300 units. b. there would be a surplus of 300 units. c. it would not have an impact on this market. d. equilibrium price in this market...
In the Egg market, a price floor that is set above market equilibrium will cause 1...
In the Egg market, a price floor that is set above market equilibrium will cause 1 - queuing on the part of consumers. 2 a surplus. 3 a shortage. 4 an excess quantity demanded.
O False Figure: Price Ceiling price floor on $12 10.50 270 290 310 Reference: Ref 6.1...
O False Figure: Price Ceiling price floor on $12 10.50 270 290 310 Reference: Ref 6.1 (Refer to the figure above. If a price floor were set at $12.00, there would be a: Select one: A surplus of 40 units. B. shortage of 40 units. • C. surplus of 20 units. D. shortage of 50 units.
Price Quantity This is an example of a binding Price Ceiling . Economists expect that a...
Price Quantity This is an example of a binding Price Ceiling . Economists expect that a binding Price Floor will create a Surplus in a market. TOU $90 $80 $70 $60 $50 $40 $30 $20 100 200 300 400 500 600 700 800 900 1000 Quantity a.) A price ceiling of $30 will create a shortage b.) A price ceiling of $10 will create a shortage C.) A price floor of $60 will create a surplus of of of/ 300...
2. If we place a price floor of $30 do we have a surplus or shortage?...
2. If we place a price floor of $30 do we have a surplus or shortage? By how much? Label producer surplus, consumer surplus, and dead weight loss. What is the quantity sold? Calculate the area of consumer surplus, producer surplus, and dead weight loss. $60 $40 $20 20 40 60 0
Price Quantity Demanded Quantity Supplied $380 280 820 $340 340 700 $300 400 580 $260 460...
Price Quantity Demanded Quantity Supplied $380 280 820 $340 340 700 $300 400 580 $260 460 460 $220 520 340 $180 580 220 $140 640 100 a. What is the equilibrium price and quantity for skis? b. If a price floor is set at $340, does the market experience a shortage or surplus? Why? How much is the shortage or surplus? c. If a price ceiling is set at $180, does the market experience a shortage or surplus? Why? How...
In a market if price is above the equilibrium: O a shortage will result and there will be downward pressure on prices. a surplus will result and there will be upward pressure on prices. O a shortage will result and there will be upward pressure on prices. O a surplus will result and there will be downward pressure on prices.
O False Figure: Price Ceiling price floor on $12 10.50 270 290 310 Reference: Ref 6.1 (Refer to the figure above. If a price floor were set at $12.00, there would be a: Select one: A surplus of 40 units. B. shortage of 40 units. • C. surplus of 20 units. D. shortage of 50 units.
Price Quantity This is an example of a binding Price Ceiling . Economists expect that a binding Price Floor will create a Surplus in a market. TOU $90 $80 $70 $60 $50 $40 $30 $20 100 200 300 400 500 600 700 800 900 1000 Quantity a.) A price ceiling of $30 will create a shortage b.) A price ceiling of $10 will create a shortage C.) A price floor of $60 will create a surplus of of of/ 300...
2. If we place a price floor of $30 do we have a surplus or shortage? By how much? Label producer surplus, consumer surplus, and dead weight loss. What is the quantity sold? Calculate the area of consumer surplus, producer surplus, and dead weight loss. $60 $40 $20 20 40 60 0
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