Microeconomics
21st Edition
ISBN: 9781259915727
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 22, Problem 6DQ
To determine
The tax and the subsidies in the agricultural sector.
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If the government introduced a price ceiling that is 20 cents different from
the present equilibrium price.
What would the new quantity supplied be?
Price p
1.00
1.40
1.00
O 42
O 43
O 44
45
44
41
12
Destity of milk per day a hands of
54
O
O
198765432
O
10
Suppose that the market is initially at an equilibrium price of $6 and an
equilibrium quantity of 40 units in the graph above. If the government
decides to add a $2 per-unit tax on this good, the deadweight loss from
the tax will be:
10
80
70
S1
O 60
SO
Demand
0 10 20 30 40 50 60 70 80 90100
3. Refer to the expanded table below from review question 8.
LO3.4
a. What is the equilibrium price? At what price is there nei-
ther a shortage nor a surplus? Fill in the surplus-shortage
column and use it to confirm your answers.
b. Graph the demand for wheat and the supply of wheat. Be
sure to label the axes of your graph correctly. Label equi-
librium price Pand equilibrium quantity Q.
c. How big is the surplus or shortage at $3.40? At $4.90?
How big a surplus or shortage results if the price is 60
cents higher than the equilibrium price? 30 cents lower
than the equilibrium price?
Thousands
of Bushels
Surplus (+)
or
Shortage (-)
Thousands
Price per
Bushel
of Bushels
Supplied
Demanded
85
$3.40
72
80
3.70
73
75
4.00
75
70
4.30
77
65
4.60
79
60
4.90
81
Chapter 22 Solutions
Microeconomics
Ch. 22 - Prob. 1DQCh. 22 - Prob. 2DQCh. 22 - Prob. 3DQCh. 22 - Prob. 4DQCh. 22 - Prob. 5DQCh. 22 - Prob. 6DQCh. 22 - Prob. 7DQCh. 22 - Prob. 8DQCh. 22 - Prob. 9DQCh. 22 - Prob. 10DQ
Ch. 22 - Prob. 11DQCh. 22 - Prob. 12DQCh. 22 - Prob. 13DQCh. 22 - Prob. 14DQCh. 22 - Prob. 1RQCh. 22 - Prob. 2RQCh. 22 - Prob. 3RQCh. 22 - Prob. 4RQCh. 22 - Prob. 5RQCh. 22 - Suppose that corn currently costs 4 per bushel and...Ch. 22 - Suppose chat both wheat and corn have an income...Ch. 22 - Prob. 3PCh. 22 - Prob. 4P
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- PRICE 20 18 16 14 12 10 Demand 1 6 4 25 units. O27 units. Consumer 1 9 units. 2 units. 2460 10 12 14 16 18 20 QUANTITY PRICE 27 24 21 718 15 12 9 6 Refer to Figure 4-2. If these are the only two consumers in the market, then the market quantity demanded at a price of $3 is Consumer 2 Demand 5 10 15 20 25 30 35 40 45 50 QUANTITYarrow_forward3.30 3.00 2.70 2.40 2.10 1.80 1.50 1.20 0.90 0.60 0.30 50 100 150 200 250 300 350 400 O b. There will be a excess supply of 200 units O c. The ceiling is non-binding O d. There will be an excess supply of 100 units Supply Demand Suppose that a price ceiling is set at $2.70. Which of the following is true? O a. There will be a shortage of 200 units Click Save and Submit to save and submit. Click Save All Answers to save all aarrow_forward-2 The graph below shows the rice market in Hatha. Price 10 6 8 7 6 LO 3 2 1 200 400 600 800 Quantity of kilos per month 1000 S D Earrow_forward
- les of Microeconomics - Spring21 %3D Which of the following is an effect of a price ceiling set below the equilibrium price? Select one: O a. Less of the good is produced with the ceiling than would be produced without the ceiling. O b. The price ceiling has no effect on the market equilibrium. Consumers can buy more than they can at the equilibrium price because the ceiling price is lower. C. O d. None of these answers is correct. GEarrow_forwardSuppose the demand for a product is given by P = 30-3Q. Also, the supply is given by P = 10 + Q. If a $4 per-unit excise tax is levied on the buyers of a good, the deadweight loss created by this tax will be $4 $16 None of these $24 O $8 Question 5 Suppose the demand for a product is given by P = 30 - 2Q. Also, the supply is given by P = 5 + 3Q. If a $5 per-unit excise tax is levied on the buyers of a good, after the tax, consumer surplus is equal to O None of these $16 $25 $24 1 pts $2.50arrow_forwardSam is willing to pay $10 for one bracelet and $5 for a second. Isabella is willing to pay $12 for one bracelet and $9 for a second. If the price is currently $8 per bracelet, what is the total consumer surplus when Sam and Isabella make their purchases? O $7 O $8 O $6 O $5arrow_forward
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