(Figure: The Market for Audiobooks) Use Figure: The Market for Audiobooks. If a price floor of$15 is imposed in this market, and the government purchases the surplus, the government must buyunits of the good and spend a total of on its purchase.Price$22.50201595D0 5 915 QuantityO5; $75O10; $15009; $135O 9; $81

When a price o 15 is set the demand will be 5 units and the quantity supplied will be 15 units hence…

Answered: (Figure: The Market for Audiobooks) Use…

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter6: Supply, Demand And Government Policies

Section: Chapter Questions

Problem 3PA

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Price(per pound) Quantity Supplied(pounds) Quantity Demanded(pounds) $7 80 30 $6 70 45 $5 60 60 $4 50 75 $3 40 90 $2 30 105 $1 20 120 The equilibrium price is $ per pound. Suppose that after a successful lobbying campaign by chocolate producers, the government imposes a price floor of $7 per pound. The price floor will lead to a surplus of pounds of chocolate. After a few years, chocolate producers are not happy. They realize that compared to the market equilibrium, their total revenue has fallen by $ . To compensate the chocolate producers, the government agrees to buy the entire surplus chocolate at the $7 price floor. Chocolate producers rejoice. Compared to the market equilibrium, their total revenue has now increased by $ .
Only typed answer and please answer correctly Reference: Ref 5-1 (Table: The Market for Soda) Look at the table The Market for Soda. If the government imposes a price ceiling of $0.50 per can of soda, the quantity of soda supplied will be: 10 cans. 8 cans. 6 cans. 7 cans.
4. These are the supply and demand schedules for good X: Quantity Supplied Quantity Demanded Price $10 18 3 9. 16 4 8. 14 7 12 6. 6. 10 7 5 8. 8. 4 6. 3 4 10 2 2 11 1 12 a) What is the equilibrium price and quantity? At this equilibrium, what is the producer's revenue? (Note: Producer's Revenue = Price * Quantity Sold) b) If the government sets a price of $8 for X, what will be the price, quantity, and revenue? Will there be a shortage or surplus of X? c) If the government sets a price of $3, answer the same questions as in b). d) Suppose the demand for X increases, so that at each price, consumers want to buy three more units of the good. What happens to price, quantity, and revenue? Why has the quantity sold not increased by three units?
The table below shows the total demand and supply for bushels of wheat per month. Price per bushel ($) Demand Supply (*000) ('000) 85 3.40 72 80 3.70 73 75 4.00 75 70 4.30 77 65 4.60 79 60 4.90 81 Required: The government concluded to establish a price ceiling for bushels of wheat at $3.70. Explain the effect of such action by the government. (i)
8. U.S. government price supports for milk led to an unceasing surplus of milk. In an effort to reduce the surplus about a decade ago, Congress offered to pay dairy farmers to slaughter cows. Use two graphs, one for the milk market and one for the meat market, to illustrate how this policy should have affected the price of meat. (Assume that meat is sold in an unregulated market.) Be sure to draw the inverse demand and supply curves and label your axes. Explain clearly.
Price (dollars per gallon) S2 $5.50 3.50 2.50 D Quantity (millions of gallons per month) 30 40 45 Assume the graph above illustrates a new tax put into the market for soft drinks. S2 is the supply curve with the $2 tax in place. What price would consumers pay if the tax was placed on consumers instead of producers? 1) $2.00 O 2) $3.50 3) $2.50 4) $1.50
(Figure: The Market for Science Fiction Books) Consider the figure The Market for Science Fiction Books. Suppose the market for science fiction books is initially equilibrium but that the government then sets a price ceiling for books in this market at $18. Do consumers gain or lose from this price control, and by how much? Do producers gain or lose from this price control, and by how much? How is total surplus affected? Price per book $40 29.33 24 18 32 48 66 Supply Demand Quantity (per week) A/
12 . Problems and Applications Q10 A market is described by the following supply and demand curves: QSQS = = 3P3P QDQD = = 400−P400−P The equilibrium price is and the equilibrium quantity is . Suppose the government imposes a price ceiling of $80. This price ceiling is , and the market price will be . The quantity supplied will be , and the quantity demanded will be . Therefore, a price ceiling of $80 will result in . Suppose the government imposes a price floor of $80. This price floor is , and the market price will be . The quantity supplied will be and the quantity demanded will be . Therefore, a price floor of $80 will result in . Instead of a price control, the government levies a tax on producers of $40. As a result, the new supply curve is: QSQS = = 3(P−40)3P−40 With this tax, the market price will be , the quantity supplied will be , and the quantity demanded will be . The passage…
11. Which of the following is a common criticism of government price controls? a) They restrict the free market resulting in a surplus b) They inefficiently use tax payer dollars c) They restrict the free market resulting in shortages d) They manipulate the market to artificially raise prices
PRICE (Dollars per pack) 50 45 TAX REVENUE (Dollars) 40 35 30 25 400 360 320 At this tax amount, the equilibrium quantity of cigarettes is government collects $ in tax revenue. 280 240 0 Suppose the government imposes a $10-per-pack tax on suppliers. 200 160 120 0 5 80 40 Supply Now calculate the government's tax revenue if it sets a tax of $0, $10, $20, $25, $30, $40, or $50 per pack. (Hint: To find the equilibrium quantity after the tax, adjust the "Quantity" field until the Tax equals the value of the per-unit tax.) Using the data you generate, plot a Laffer curve by using the green points (triangle symbol) to plot total tax revenue at each of those tax levels. 0 Demand Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. 10 15 20 25 30 35 40 45 50 QUANTITY (Packs) 5 True O False Graph Input Tool Market for Cigarettes Quantity (Packs) 10 15 20 25 30 TAX (Dollars per pack) Demand Price (Dollars per pack) Tax…
5. Which of the following government interventions causes the price that buyers pay for the good to increase? Select one or more: I. Price Floors II. Price Ceilings III. Subsidies IV. Taxes
12. Understanding subsidies Suppose that in an attempt to protect its domestic toy industry, Canada's government subsidizes the production or consumption of domestically produced toys by giving each citizen a subsidy card. Each time citizens buy a domestically made toy, they swipe their cards and receive discounts of $8 off the price of a toy. The following graph represents the market for domestically made toys in Canada without any subsidy Adjust the graph to show the effect of the $8 subsidy. CE (Dolan pe a toy) 24 22 20 10 10 14 Supply Demand a Supply D

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