Refer to the figure to answer the following two questions. 500 P 450 400 350 300 250 200 150 100 50 Q 0 35 70 105 140 175 210 245 280 315 350 385 420 455 490 525 1) If the government imposes a binding price floor of $350.00 in this market, what is the result? a. There will be a of units. b. The redistribution of surplus from consumers to the producer is equal to $ c. The deadweight loss due to price floor is $ 2) If the government imposes a binding price ceiling of $100.00 in this market, what is the result? a. There will be a of units. b. The highest price that would be charged in a black market is $ c. The deadweight loss due to price ceiling is $

Refer to the figure to answer the following two questions. 500 P 450 400 350 300 250 200 150 100 50 Q 0 35 70 105 140 175 210 245 280 315 350 385 420 455 490 525 1) If the government imposes a binding price floor of $350.00 in this market, what is the result? a. There will be a of units. b. The redistribution of surplus from consumers to the producer is equal to $ c. The deadweight loss due to price floor is $ 2) If the government imposes a binding price ceiling of $100.00 in this market, what is the result? a. There will be a of units. b. The highest price that would be charged in a black market is $ c. The deadweight loss due to price ceiling is $

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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First, use the black point (plus symbol) to indicate the equilibrium price and quantity of designer handbags 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. PRICE (Dollars per handbag) 500 450 400 Demand 350 300 250 200 Before Tax Supply 150 100 50 0 0 160 320 480 640 800 960 1120 1280 1440 1600 QUANTITY (Handbags) + Equilibrium Consumer Surplus Producer Surplus ?
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1) Below is the demand and supply schedule for the market for personal chefs. These are chefs that are hired to come into the client’s home to prepare meals for them. Show all your calculations used to answer the following questions. d)calculate the excess demand or supply at the price of $35,$70,$25 and $65 e) If tax of 5$ imposed compute the consumer and producer tax burden Price per hour Qty supplied Qty demanded 20 0 29 25 1 26 30 3 23 35 5 20 40 7 17 45 9 14 50 11 11 55 13 9 60 15 7 65 17 5 70 19 3 75 21 1 80 23 0
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