Price Qd Qs $1.60 9,000 5,000 $2.00 8,500 5,500 $2.40 8,000 6,400 $2.80 7,500 7,500 $3.20 7,000 9,000 $3.60 6,500 11,000 $4.00 6,000 15,000 Table 3.11

What could happen if a nonbinding price ceiling is implemented? O Market price will rise. O Market price will fall. O The quantity supplied is equal to the equilibrium quantity. O There will be a surplus after the nonbinding price ceiling is implemented. O There will be a shortage after the nonbinding price ceiling is implemented

Consider the market for arugula, a normal good. Which of the following changes would result in an increase in both the equilibrium price and the equilibrium quantity of arugula? * O A decrease in consumer income O An increase in the price of salad dressing, a complement O A decrease in the price of radicchio, a substitute An increase in the price of water irrigation for arugula farms An increase in population In which of the following cases would government intervention in a market result in an increase in the quantity sold? * Setting a price ceiling above the equilibrium price Setting a price ceiling below the equilibrium price Setting a price floor above the equilibrium price Levying a per-unit tax on producers Providing producers of a product with a per unit subsidy

fo' = 100 - 5P and Q' = 10 + P. what are the equilibrium values of price and quantity? If demand increases by 12 and price remains the same as in (a) will there be a surplus or shortage? How much? %3D ill ho the new eauilihrium price and quantity?