Suppose that the demand curve for beans is: Qd = 300 - 30p and the supply curve Qs = 30p. The government imposes a price support at p = $7. What is the deadweight loss if the government supports the price by purchasing excess supply? The deadweight loss is 1,000 720 500 430 850

If the economy goes into a recession and incomes fall, what happens in markets? Prices of inferior goods go up because the demand for them increases Prices of normal goods go up because the demand for them increases Prices of all goods go down None of the other answers is correct Suppose the demand curve is given by P=10-Q and the supply curve by Q=P If the price in the market is given by $7, then The market is in equilibrium There is a a surplus in the market There is a shortage in the market Increasing the price will result in an increase in the quantity demanded

For this question, the demand is P = 145 - 3Q & supply is P = 35 + 2Q. To enable more citizens to buy more gasoline, the Government decides to give gasoline producers a subsidy of $5 per unit- Using the supply and demande quations from #2. What price will consumer's pay and how much gasoline will they buy (note the answersm ay be fractions or in decimal points)? How much will the Government spend on the subsidy? What will be the change in producer surplus?

Suppose that the demand and supply curves for green peas are given by QD = 10 – 8P and QS = 2P, where P is the price per pound and Q is measured in thousands of pounds. If the price per pound of peas is $0.50, the market _____, so the price will _____. has excess demand of 3,000 pounds; rise has excess supply of 1,000 pounds; fall is in equilibrium; remain unchanged has excess demand of 5,000 pounds; rise