Economics For Today
9th Edition
ISBN: 9781305507074
Author: Tucker, Irvin B.
Publisher: Cengage Learning,
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Question
Chapter 4, Problem 13SQ
To determine
Relation between the
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Students have asked these similar questions
When the actual price in a market is above the equilibrium price we would expect:
a. a shortage of the good or service.
b. this higher price to be the new equilibrium.
c. a surplus of the good or service.
d. an excess demand or excess supply depending upon the extent of the difference between actual and equilibrium price.
An effective price ceiling:
A. Increases the quantity supplied.
B. Is set above the equilibrium price.
C. Results in a surplus.
D. Is set below the equilibrium price.
If the supply decreases and the demand decreases,
a.
b.
C.
d.
the equilibrium price and quantity both decreases.
the equilibrium price decreases while the equilibrium quantity increases.
the equilibrium quantity decreases while the effect on price is ambiguous.
the equilibrium price and quantity both increases.
A a
B b
D d
Chapter 4 Solutions
Economics For Today
Ch. 4.2 - Prob. 1YTECh. 4.2 - Prob. 2YTECh. 4.2 - Prob. 3YTECh. 4.2 - Prob. 4YTECh. 4.3 - Prob. 1YTECh. 4.3 - Prob. 2YTECh. 4 - Prob. 1SQPCh. 4 - Prob. 2SQPCh. 4 - Prob. 3SQPCh. 4 - Prob. 4SQP
Ch. 4 - Prob. 5SQPCh. 4 - Prob. 6SQPCh. 4 - Prob. 7SQPCh. 4 - Prob. 8SQPCh. 4 - Prob. 9SQPCh. 4 - Prob. 10SQPCh. 4 - Prob. 1SQCh. 4 - Prob. 2SQCh. 4 - Prob. 3SQCh. 4 - Prob. 4SQCh. 4 - Prob. 5SQCh. 4 - Prob. 6SQCh. 4 - Prob. 7SQCh. 4 - Prob. 8SQCh. 4 - Prob. 9SQCh. 4 - Prob. 10SQCh. 4 - Prob. 11SQCh. 4 - Prob. 12SQCh. 4 - Prob. 13SQCh. 4 - Prob. 14SQCh. 4 - Prob. 15SQCh. 4 - Prob. 16SQCh. 4 - Prob. 17SQCh. 4 - Prob. 18SQCh. 4 - Prob. 19SQCh. 4 - Prob. 20SQ
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Similar questions
- The government imposes a price ceiling below the equilibrium price. Which of the following are the effects of this price ceiling? A. Shortage B. Deadweight loss C. Inefficiently low quality of the good D. Both A and B E. All of the above F. None of the abovearrow_forwarda. If a producer tries to sell oranges at a price of $0.50 per pound, what will be the quantity demanded and quantity supplied at this price? b. Determine whether there is a surplus or a shortage at a price of $0.50 per pound, and determine the size of the surplus or shortage. At this price, there will be aarrow_forwardIf a farmer has a shortage of pumpkins, but the demand stays the same, what happens to the price of the pumpkins? The price is regulated by the government. The price stays the same. The price increases. The price decreases.arrow_forward
- An increase in supply and a decrease in demand occur in a market. What happens to the equilibrium price and quantity?arrow_forwardSuppose that a new scientifie study is published that demonstrates that eating apples slows aging. How will this affect the equilibrium price and quantity in the market? a. The equilibrium price will increase and the equilibrium quantity will decrease. b. The equilibrium price will decrease and the equilibrium quantity will increase. c. Both the equilibrium quantity and price will increase. d. Both the equilibrium quantity and price will decrease.arrow_forwardPrice ($ per ton) 280 300 320 340 360 380 Quantity Supplied (million tons) 8.5 9.0 9.5 10.0 10.5 11.0 Quantity Demanded (million tons) 12.5 11.0 9.5 8.0 6.5 5.0arrow_forward
- Can you propose a policy that would induce the market to supply more rental housing units?arrow_forwardLook at the graph. A bookstore owner increases the price of art books to $25. Which of these would occur? A higher equilibrium point, because demand and price increased A lower equilibrium point, because the supply will increase A shortage, because the price is lower than equilibrium price A surplus, because the price is higher than equilibrium pricearrow_forwardDuring winter the demand for lattes increases. Therefore, for a given supply, equilibrium price increases and equilibrium quantity increases. equilibrium price increases and equilibrium quantity decreases. equilibrium price increases and the effect on quantity is ambiguous. equilibrium price decreases and equilibrium quantity decreases. a. b. C. d. B a b C darrow_forward
- Assume that we are looking at the market for snowblowers in December. The initial equilibrium is at a price of $500 and quantities of 1,000. Assume that December begins with three massive blizzards, how might this impact the snowblower market? Demand will shift to the right, causing a surplus, which causes prices to increase until we end up with higher prices and a greater quantity. Demand will shift to the right, causing a shortage, which causes prices to increase until we end up with higher prices and a lessor quantity. Demand will shift to the right, causing a shortage, which causes prices to increase until we end up with higher prices and a greater quantity. Demand will shift to the right, causing a shortage, which causes prices to decrease until we end up with higher prices and a greater quantity.arrow_forwardIf the market price is above the equilibrium price: A. A shortage will occur and producers will produce more and lower prices B. A surplus will occur and producers will produce less and lower prices C. A surplus will result and consumers will bid prices up D. Producers will make extremely high profitsarrow_forwardWhat will be the result of an decrease in a price ceiling for gasoline? Group of answer choices The quantity will decrease because the quantity demanded will decrease. The quantity will remain the same; only the price will change. The quantity will increase because the quantity demanded will increase. The quantity will decrease because the quantity supplied will decrease.arrow_forward
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