Table 6-1 Quantity Quantity Price Demanded Supplied $20 2400 b $30 2000 200 $40 1600 400 $50 1200 600 $60 800 800 $70 400 1000 $80 0 1200 Refer to Table 6-1. Suppose the government imposes a price ceiling of $40 on this market. What will be the size of the shortage in this market? Select one: O a. 0 units b. 400 units O c. 1200 units O d. 1600 units

Refer to the figure below. If the government sets a price ceiling of $6, 18 16 14 12 10 8 6 4 2 D₁ 24 6 8 10 12 14 16 18 there would be a shortage of 14 units. O there would be an excess supply of 6 units. O There would be a shortage of 4 units. consur ers would demand 14 units.

Price $8.00 7.00 6.00 5.00 4.00 30 40 50 6O 70 Quantity Refer to Figure 4-17. Which of the following price controls would cause a shortage of 10 units of the good? O a price ceiling of $5.50 O a price floor of $5.50 O a price ceiling of $6.50 a price floor of $6.50

QUESTION 13 Price Quantity Demanded Quantity Supplied 10 2 million 20 million 16 12 19864 9 5 4 6 MEIFFTIATIE 10 12 4 0 The chart above provides the demand & supply schedules for yoga mats in California. Suppose that a price ceiling of $6 is implemented. Which of the following is not true? OA. There is a shortage in the market. OB. The market is in equilibrium since everyone who wants it is getting to purchase it. OC. The price ceiling is binding OD. There may be some inefficiency due to this price control.

1. Given the following data, identify the amount of shortage or surplus that would exist at a price of (a) $5.00 (b) $3.00 (c) $1.00 What is the equilibrium price? How would the equilibrium price and quantity change if Alice left the market? Price $5.00 $4.00 $3.00 $2.00 $1.00 Quantity demanded Al 1234 5 Betsy 0 111 2 Casey 2 23 3 4 Daisy 1 344 6 Eddie 1223 5 Market Total Price $5.00 $4.00 $3.00 $2.00 $1.00 Quantity supplied Alice 3 3 33 3 Butch 7 54 4 2 Connie 6 4 3 31 Dutch 6 5 4 30 Ellen 4 22 2 1 Market Total

Suppose that the quantity demanded and quantity supplied in the market for milk is as follows: Price per Gallon Quantity Demanded Quantity Supplied $5 1000 5000 $4 2000 4500 $3 3500 3500 $2 59 4100 2000 $1 6000 1000 What is the equilibrium price and quantity of milk? price: $4; quantity: 4500 O price: $3; quantity: 3500 .price: $2, quantity: 2000

12. Market equilibrium and disequilibrium The following graph shows the monthly demand and supply curves in the market for teapots. Use the graph input tool to help you answer the following questions. You will not be graded 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 Teapots 54 Supply IPrice (Dollars per teapot) 24 Quantity Demanded (Teacots) Quantity Supplied (Teapots) 600 400 42 38 30 オ 4. Demend QUANTITY Teapots arch PRICE (Dollars per teapot)

In an economy you estimate the supply curve of milk to be Ps = 3+Q and the demand curve to be PD = 5-2Q, where Q is the millions of litres and P is price in dollars. WNhat Would be the market clearing price and what is the effect of a price ceiling of $3/Aitre? O A The market clearing price would be $2 and a price ceiling would have no impact. O B. The market clearing price would be $3.67 and a price ceiling would have no impact. O C. The market clearing price would be $3.67 and a price ceiling would induce a shortage of-1 million litres. O D. The market clearing price would be $4.33 and a price ceiling would induce a shortage of-5 million litres.

Price of Good ABC $4 5 6 7 Quantity Demanded 100 80 60 50 Quantity Supplied 40 80 110 160 Refer to Table 4-2. Suppose that the government imposes a price ceiling in the market for good ABC at a price of $4. The result of the price ceiling would be a of units of good ABC. O a shortage: 20 0 b surplus: 60 OC surplus: 20 Od shortage: 60

8. Suppose the total demand for wheat and the total supply of wheat per month in the Kansas City grain market are as shown in the table below. Suppose that the government estab- lishes a price ceiling of $3.70 for wheat. What might prompt the government to establish this price ceiling? Explain care- fully the main effects. Demonstrate your answer graphically. Next, suppose that the government establishes a price floor of $4.60 for wheat. What will be the main effects of this price floor? Demonstrate your answer graphically. LO3.6 Thousands of Bushels Thousands of Demanded Price per Bushel Bushels Supplied 85 $3.40 72 80 3.70 73 75 4.00 75 70 4.30 77 65 4.60 79 60 4.90 81