A B o celling Price ceiling coling |Shortage

Macmilla As with any supply and demand diagram, the of diamond rings is labeled on the vertical axis, and the of diamond rings demanded and supplied is labeled on the horizontal axis. price; quantity quantity: price supply; demand demand; supply consumer surplus; producer surplus

Suppose the market price of wheat is $7 a bushel and a price ceiling is set at $9 a bushel. What is the impact of this price ceiling?

Consider the market for commercial fans. The following graph shows the demand and supply for commercial fans before the government imposes any taxes.   First, use the black point (plus symbol) to indicate the equilibrium price and quantity of commercial fans in the absence of a tax. Then use the green point (triangle symbol) to shade the area representing total consumer surplus (CS) at the equilibrium price. Next, use the purple point (diamond symbol) to shade the area representing total producer surplus (PS) at the equilibrium price. Suppose the government imposes an excise tax on commercial fans. The black line on the following graph shows the tax wedge created by a tax of $50 per fan.   First, use the tan quadrilateral (dash symbols) to shade the area representing tax revenue. Next, use the green point (triangle symbol) to shade the area representing total consumer surplus after the tax. Then, use the purple point (diamond symbol) to shade the area representing total producer…

Consider the market for mountain bikes. The following graph shows the demand and supply for mountain bikes before the government imposes any taxes. First, use the black point (plus symbol) to indicate the equilibrium price and quantity of mountain bikes in the absence of a tax. Then use the green point (triangle symbol) to shade the area representing total consumer surplus (CS) at the equilibrium price. Next, use the purple point (diamond symbol) to shade the area representing total producer surplus (PS) at the equilibrium price.   (screen shot 1)   Suppose the government imposes an excise tax on mountain bikes. The black line on the following graph shows the tax wedge created by a tax of $80 per bike. First, use the tan quadrilateral (dash symbols) to shade the area representing tax revenue. Next, use the green point (triangle symbol) to shade the area representing total consumer surplus after the tax. Then, use the purple point (diamond symbol) to shade the area…

The figure to the right shows the weekly supply and demand for calculators at a local college in Victoria, British Columbia. Suppose the college wants to put a binding price ceiling on calculators sold on campus to keep student costs low. 1.) Use the line drawing tool to draw and label an appropriate binding price ceiling. 2.) Use the point drawing tool to plot and label the quantity demanded and supplied along the price ceiling. Carefully follow the instructions above, and only draw the required objects. Which of the following is not a consequence of this binding price ceiling? O A. an excess supply of calculators OB. a reduction in calculator sales O C. some unhappy students O D. a decrease in the quantity supplied of calculators OE. an excess demand for calculators Price ($) 50- 40- 30- 20- 10- 0- 0 10 20 E 30 Quantity 40 S D 50

Please refer to the image below and answer question 13

34 q² and the supply curve p = 2+ q², find the producer surplus when the market is Given the demand curve p = in equilibrium. - Round your answer to three decimal places. The producer surplus is i

The figure to the right illustrates the market for apples in which the government has imposed a price floor of $14 per crate. How many crates of apples will be sold after the price floor has been imposed? 14 million crates of apples per year. (Enter your response as an integer.) Will there be a shortage or surplus? If there is a shortage or surplus, how large will it be? There will be a surplus of 18 million crates of apples per year. (Enter your response as an integer.) Will apple producers benefit from the price floor? O A. Apple producers who are able to sell their apples at the $14 price per crate will benefit. O B. Apple producers who are not able to sell their apples will not benefit. O C. Total revenue for apple producers as a group will decrease from $220 million to $196 million. O D. Both a and b. O E. All of the above. Price 20- 18- 16- 14 12- 10- 8- 6- 4- 2- 0- 0 Supply Demand 4 8 12 16 20 24 28 32 36 40 Quantity (millions of crates per year)

1) If a price ceiling is lower than the equilibrium market price, then   a) The price ceiling is non-binding, and therefore the price is held at the price ceiling.   b) The price ceiling is binding, and therefore the price is held at the price ceiling.   c) The price ceiling is non-binding, and therefore the price is the equilibrium market price.   d) The price ceiling is binding, and therefore the price is the equilibrium market price.   e) None of the above.