Suppose a government imposes a price ceiling and price floor in the same market. If the price ceiling is lower than the price floor, then: Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a The market cannot function. b The market will function but fewer units will be sold than in the original equilibrium. The market will function but more units will be sold than in the original equilibrium.

Suppose a government imposes a price ceiling and price floor in the same market. If the price ceiling is lower than the price floor, then: Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a The market cannot function. b The market will function but fewer units will be sold than in the original equilibrium. The market will function but more units will be sold than in the original equilibrium.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The quantity exchanged in the market will be below the equilibrium quantity whenever the prevailing market price is not equal to equilibrium price. Is this statement true or false? Please include 2 graphs indicating the quantity exchanged in each graph
b) The government decides to impose a price floor $4.10. It does so by promising farmers that it will buy the amount of corn necessary to keep the price pegged at no less than $4.10 a bushel. In the figure above plot the price floor. c) With the price floor in place, what is the amount of corn consumed by private demanders? d) How much corn do farmers supply? e) Describe the effect of a price floor imposed on the corn producers.
If a price ceiling is set by the government above the market equilibrium price, then A: the quantity demanded in the market is greater than the quantity supplied, thereby creating a surplus. B: the quantity supplied in the market is greater than the quantity demanded, thereby creating a shortage. C: the market equilibium price will prevail. D: the quantity supplied in the market is greater than the quantity demanded, thereby creating a surplus.
A market is described by the following supply and demand curves: QS = 3P QD = 400−P The equilibrium price is $ and the equilibrium quantity is . Suppose the government imposes a price ceiling of $120. This price ceiling is , and the market price will be $ . The quantity supplied will be , and the quantity demanded will be . Therefore, a price ceiling of $120 will result in . Suppose the government imposes a price floor of $120. This price floor is , and the market price will be $ . The quantity supplied will be and the quantity demanded will be . Therefore, a price floor of $120 will result in . Instead of a price control, the government levies a tax on producers of $40. As a result, the new supply curve is:
14. Minimum wage legislation The following graph shows the labour market in the fast-food industry in the fictional town of Supersize City. Use the graph input tool to help you answer the following questions. You will not be scored on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Graph Input Tool Market for Labour in the Fast-Food Industry 20 18 I Wage (Dollars per hour) Supply 16 Labour Demanded (Thousands of workers) Labour Supplied (Thousands of workers) 174 126 14 12 10 bepand 4. 90 120 150 180 210 240 270 300 LABOUR (Thousands of workers) 30 60 In this market, the equilibrium hourly wage is and the equilibrium quantity of labour is workers. WAGE(Dollars per hour)
Some cities impose rent control laws, which are price controls or limits on the price of rental accommodations (apartments, houses, and mobile homes). New York City alone had over two million rent-controlled apartments in the early 1950s, but only about 27,000 as of 2014. Show the effect of a rent control law on the equilibrium rental price and the quantity of N.Y. apartments. Show the amount of excess demand on your supply-and-demand diagram. Consider the market rental dwellings in New York illustrated in the figure to the right. Suppose the maximum rent with New York's laws is p. 1.) Using the point drawing tool, indicate the quantity of rental dwellings demanded and the market rent with the rent control laws. Label this point 'ed.' 2.) Using the point drawing tool, indicate the quantity of rental dwellings supplied and the market rent with the rent control laws. Label this point 'es.' Carefully follow the instructions above, and only draw the required objects. P, rent Q Q, quantity…
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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.
Question 9 Setting a price ceiling below the equilibrium price can result in a surplus, where the quantity demanded exceeds the quantity supplied. a shortage, where the quantity demanded exceeds the quantity supplied. a surplus, where the quantity supplied exceeds the quantity demanded. a shortage, where the quantity supplied exceeds the quantity demanded. no impact on the quantity demanded or the quantity supplied. Question 10 US minimum wage law is an example of a price floor. price ceiling. law that requires quantity demanded to be equal to quantity supplied. law that allows individual employers and employees to make free decisions. law that sets the minimum number of hours that an employee must work for wages during the week. Question 11 Gross domestic product (GDP) is best defined as the total market…
Lesson 10 Question 9
Question 12 The equilibrium price of a good is $4 with no price controls. The price of the good would continue to serve as the rationing mechanism (i.e., the control would not be "binding") if Group of answer choices a price floor of $5 is imposed. All of the above are correct. a price ceiling of $3 is imposed. a price ceiling of $5 is imposed.