Homework Answers
Answer:
The price control set by the government in this situation is a price ceiling, imposed below free market equilibrium price. In following graph, the ceiling price is shown.
There is a possibility of forming a black market if there is a Price Control in market.
If a price floor is set below the free market equilibrium price, then the quantity demanded remains unaffected
A price floor is binding only if it is imposed below free market equilibrium price.
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Price Graph The graph shows the market for good A. The equilibrium price and quantity is...
Real interest rate (1) Credit curve Let the credit market return to its initial equilibrium, and...
Real interest rate (1) Credit curve Let the credit market return to its initial equilibrium, and now consider the following event. Businesses become more optimistic about the future of the economy, and decide to distribute more of their earnings as dividends to their shareholders. On Graph 2: 1.) Using the line drawing tool, determine the effect on the equilibrium real interest rate and the equilibrium quantity of credit. Label your curve(s) appropriately. Carefully follow the instructions above and only draw...
The graph on the right shows the market for hamburger, which is in equilibrium. Hamburger is...
The graph on the right shows the market for hamburger, which is in equilibrium. Hamburger is a normal good, and people alike to eat cheese with hamburger. Beef is an input to hamburger production. Suppose that there is an increase in processing costs. 1.) Using the line drawing tool, show the effect on the market. Properly label your new curve. 2.) Using the point drawing tool, show the new equilibrium price and quantity Label your point E E25 Carefully follow...
Click on the icon to read the news clip, then use this information to complete the...
Click on the icon to read the news clip, then use this information to complete the following steps. In the left graph 1 Use the line tool to draw the market demand and supply curves in 2016. Label the curves. 2. The market equilibrium is 5 million gallons and the price is $50 a gallon Use the point tool to draw the market equilibrium and label it In the right graph Price (dollars per gallon) 30 85 Price and cost...
The graph shows the supply curve of baskets and the market price of a basket. Price...
The graph shows the supply curve of baskets and the market price of a basket. Price (dollars per basket) O 60.00 Draw a point to show the minimum supply price of the 20th basket. Label it 1. o Market 50.00+ price Draw a point to show the marginal cost of the 60th basket. Label it 2. 40.007 Draw an arrow to show the producer surplus on the 60th basket. The producer surplus on the 60th basket is $ . 30.00...
Price (S/pound) The graph to the right shows the competitive equilibrium in the domestic cotton market...
Price (S/pound) The graph to the right shows the competitive equilibrium in the domestic cotton market in autarky (no trade). Suppose the world price of cotton is $7 per pound, and assume that the United States can buy as much imported cotton as it wants at the world price. Now suppose that the U.S. allows the free trade of cotton. 1.) Using the line drawing tool, indicate the world price of cotton and label it Pw 2.) Using the point...
Gasoline Price Controls. The equilibrium price of gasoline is $3.00 and the equilibrium quantity is 100...
Gasoline Price Controls. The equilibrium price of gasoline is $3.00 and the equilibrium quantity is 100 million gallons. Suppose the government sets a maximum price of $2.90. (For producers, each $0.01 increase in price increases quantity supplied by 3 million gallons.) Gasoline market 1.) Use the line drawing tool to show the maximum price. Label this line 'Price Max'. 2.) Use the point drawing tool to indicate the quantity supplied under the maximum price and label that point 'b'. Price...
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...
1.Eftect of a tax on buyers and sellers The following graph shows the daily market for...
1.Eftect of a tax on buyers and sellers The following graph shows the daily market for shoes when the tax on sellers is set at $0 per Suppose the government Institutes a tax of $11.60 per pair, to be paid by the seller. (Hint: To see the impact of the tax, first enter the value of the tax in the Taxon Sellers field. Then line to the adjusting the value in the Price field.) move the green line to the...
HELP drop down menu choices: increase decrease remains unchanged The figure to the right depicts the...
HELP
drop down menu choices:
increase
decrease
remains unchanged
The figure to the right depicts the bond market. Show what will happen to interest rates if prices in the bond market become more volatile. 1. Using the line drawing tool, show the effect of this shock on the bond market. Properly label your line. 2. Using the point drawing tool, indicate the new equilibrium bond price and quantity. Label the point '2'. Carefully follow the instructions above, and only draw...
The figure to the right depicts the bond market. Show what will happen to interest rates...
The figure to the right depicts the bond market. Show what will happen to interest rates if prices in the bond market become more volatile. 1. Using the line drawing tool, show the effect of this shock on the bond market. Properly label your line, 2. Using the point drawing tool, indicate the new equilibrium bond price and quantity. Label the point 2. Carefully follow the instructions above, and only draw the required objects. The effect of this shock will...
Real interest rate (1) Credit curve Let the credit market return to its initial equilibrium, and now consider the following event. Businesses become more optimistic about the future of the economy, and decide to distribute more of their earnings as dividends to their shareholders. On Graph 2: 1.) Using the line drawing tool, determine the effect on the equilibrium real interest rate and the equilibrium quantity of credit. Label your curve(s) appropriately. Carefully follow the instructions above and only draw...
The graph on the right shows the market for hamburger, which is in equilibrium. Hamburger is a normal good, and people alike to eat cheese with hamburger. Beef is an input to hamburger production. Suppose that there is an increase in processing costs. 1.) Using the line drawing tool, show the effect on the market. Properly label your new curve. 2.) Using the point drawing tool, show the new equilibrium price and quantity Label your point E E25 Carefully follow...
Click on the icon to read the news clip, then use this information to complete the following steps. In the left graph 1 Use the line tool to draw the market demand and supply curves in 2016. Label the curves. 2. The market equilibrium is 5 million gallons and the price is $50 a gallon Use the point tool to draw the market equilibrium and label it In the right graph Price (dollars per gallon) 30 85 Price and cost...
The graph shows the supply curve of baskets and the market price of a basket. Price (dollars per basket) O 60.00 Draw a point to show the minimum supply price of the 20th basket. Label it 1. o Market 50.00+ price Draw a point to show the marginal cost of the 60th basket. Label it 2. 40.007 Draw an arrow to show the producer surplus on the 60th basket. The producer surplus on the 60th basket is $ . 30.00...
Price (S/pound) The graph to the right shows the competitive equilibrium in the domestic cotton market in autarky (no trade). Suppose the world price of cotton is $7 per pound, and assume that the United States can buy as much imported cotton as it wants at the world price. Now suppose that the U.S. allows the free trade of cotton. 1.) Using the line drawing tool, indicate the world price of cotton and label it Pw 2.) Using the point...
Gasoline Price Controls. The equilibrium price of gasoline is $3.00 and the equilibrium quantity is 100 million gallons. Suppose the government sets a maximum price of $2.90. (For producers, each $0.01 increase in price increases quantity supplied by 3 million gallons.) Gasoline market 1.) Use the line drawing tool to show the maximum price. Label this line 'Price Max'. 2.) Use the point drawing tool to indicate the quantity supplied under the maximum price and label that point 'b'. Price...
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...
1.Eftect of a tax on buyers and sellers The following graph shows the daily market for shoes when the tax on sellers is set at $0 per Suppose the government Institutes a tax of $11.60 per pair, to be paid by the seller. (Hint: To see the impact of the tax, first enter the value of the tax in the Taxon Sellers field. Then line to the adjusting the value in the Price field.) move the green line to the...
HELP
drop down menu choices:
increase
decrease
remains unchanged
The figure to the right depicts the bond market. Show what will happen to interest rates if prices in the bond market become more volatile. 1. Using the line drawing tool, show the effect of this shock on the bond market. Properly label your line. 2. Using the point drawing tool, indicate the new equilibrium bond price and quantity. Label the point '2'. Carefully follow the instructions above, and only draw...
The figure to the right depicts the bond market. Show what will happen to interest rates if prices in the bond market become more volatile. 1. Using the line drawing tool, show the effect of this shock on the bond market. Properly label your line, 2. Using the point drawing tool, indicate the new equilibrium bond price and quantity. Label the point 2. Carefully follow the instructions above, and only draw the required objects. The effect of this shock will...
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