Let Qd = 140-2p and Qs =-20+2p represent the demand and supply equations for milk, respectively. A price floorequal to $50 will createwhereas a price floor equal to $30 will createA. excess supply equal to 20 units; excess demand equal to 20 unitsB. excess supply equal to 40 units; excess demand equal to 40 unitsC. excess supply equal to 40 units; zero excess demandD. excess supply equal to 20 units; zero excess demandPrice ($)70-60-50-840-30-20-10-0-0204060 80Quantity100SD120 140Q Consider the figure at the right, which represents the production possibilities boundary for pizzas and guns.The combination(s) of pizzas and guns atOA. points A and C are just attainable but inefficient.O B. points A and C are less efficient than point B.OC. point B is efficient but unattainable.OD. point B is attainable but inefficient.O E. points A and C are unattainable.Quantity of PizzaBQuantity of Guns

Let Q = 140-2p and Qs = -20+2p represent the demand and supply equations for milk, respectively. A price floor equal to $50 will create whereas a price floor equal to $30 will create O A. excess supply equal to 20 units; excess demand equal to 20 units OB. excess supply equal to 40 units; excess demand equal to 40 units O C. excess supply equal to 40 units; zero excess demand O D. excess supply equal to 20 units; zero excess demand Price ($) 70- 60- 50- 40- 30- 20+ 10- 04 0 20 40 60 80 Quantity 100 120 S D 140 Q

Let Q = 140-2p and Qs = -20+2p represent the demand and supply equations for milk, respectively. A price floor equal to $50 will create whereas a price floor equal to $30 will create O A. excess supply equal to 20 units; excess demand equal to 20 units OB. excess supply equal to 40 units; excess demand equal to 40 units O C. excess supply equal to 40 units; zero excess demand O D. excess supply equal to 20 units; zero excess demand Price ($) 70- 60- 50- 40- 30- 20+ 10- 04 0 20 40 60 80 Quantity 100 120 S D 140 Q

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter2: Choice In A World Of Scarcity

Section: Chapter Questions

Problem 2SCQ: Return to the example in Figure 2.4. Suppose there is an improvement in medical technology that...

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