Microeconomics (13th Edition)
13th Edition
ISBN: 9780134744476
Author: Michael Parkin
Publisher: PEARSON
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Question
Chapter 6, Problem 17APA
To determine
The effect of a subsidy on
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Students have asked these similar questions
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 $ .
(Figure: Market) A quota of 25 units is placed on the market that is shown in the figure. The quota
the
quantity sold in the market by
units.
Price
Supply
$40
$35
$30
$25
$20
Demand
$5
25 30 40 50 60
75
Quantity
100
O lowers; 25
O lowers; 50
O raises; 25
O raises; 30
Problem 02-06 (algo)
Suppose demand and supply are given by Qd = 60 - Pand QS = 1.0P-20.
a. What are the equilibrium quantity and price in this market?
Equilibrium quantity:
Equilibrium price: $
b. Determine the quantity demanded, the quantity supplied, and the
magnitude of the surplus if a price floor of $52 is imposed in this market.
Quantity demanded:
Quantity supplied:
Surplus:
20
Quantity demanded:
Quantity supplied:
Shortage:
Full economic price: $
40
C. Determine the quantity demanded, the quantity supplied, and the
magnitude of the shortage if a price ceiling of $35 is imposed in the
market. Also, determine the full economic price paid by consumers.
Chapter 6 Solutions
Microeconomics (13th Edition)
Ch. 6.1 - Prob. 1RQCh. 6.1 - Prob. 2RQCh. 6.1 - Prob. 3RQCh. 6.1 - Prob. 4RQCh. 6.2 - Prob. 1RQCh. 6.2 - Prob. 2RQCh. 6.2 - Prob. 3RQCh. 6.2 - Prob. 4RQCh. 6.2 - Prob. 5RQCh. 6.3 - How does the elasticity of demand influence the...
Ch. 6.3 - Prob. 2RQCh. 6.3 - Prob. 3RQCh. 6.3 - Prob. 4RQCh. 6.3 - Prob. 5RQCh. 6.4 - Prob. 1RQCh. 6.4 - Prob. 2RQCh. 6.4 - Prob. 3RQCh. 6.4 - Prob. 4RQCh. 6.4 - Prob. 5RQCh. 6.5 - Prob. 1RQCh. 6.5 - Prob. 2RQCh. 6.5 - Prob. 3RQCh. 6.5 - Prob. 4RQCh. 6 - Prob. 1SPACh. 6 - Prob. 2SPACh. 6 - Prob. 3SPACh. 6 - Prob. 4SPACh. 6 - Taxes (Study Plan 6.3) 5.The table in the next...Ch. 6 - Prob. 6SPACh. 6 - Prob. 7SPACh. 6 - Prob. 8SPACh. 6 - Prob. 9APACh. 6 - Prob. 10APACh. 6 - Prob. 11APACh. 6 - Prob. 12APACh. 6 - Prob. 13APACh. 6 - Prob. 14APACh. 6 - Prob. 15APACh. 6 - Prob. 16APACh. 6 - Prob. 17APACh. 6 - Prob. 18APACh. 6 - Prob. 19APACh. 6 - Prob. 20APACh. 6 - Prob. 21APACh. 6 - Prob. 22APACh. 6 - Prob. 23APA
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