Microeconomics
13th Edition
ISBN: 9781337617406
Author: Roger A. Arnold
Publisher: Cengage Learning
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Chapter 4, Problem 1WNG
To determine
The
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Use the following supply and demand schedules for skate boards in table 18.1, to answer the questionsbelow.
Table 18.1
Price ($)
Quantity Demanded
Quantity Supplied
300
60
30
400
55
40
500
50
50
600
45
60
700
40
70
800
35
80
What will be the result of a price ceiling of $400 on skate boards?
The table below sets out the demand and supply schedules for college meals.
Price
(dollars per
meal)
4
5
6
7
8
Quantity
demanded
(meals per week)
3,000
2,750
2,500
2,250
Quantity
supplied
2,000
1,500
2,000
2,500
3,000
3,500
If the college put a price ceiling on meals at $7 a meal, what is the price students pay
for a meal? How many meals do they buy?
The price of a meal is $6 per meal and students buy 2,500 meals per week.
The price of a meal is $5 per meal and students buy 2,750 meals per week.
The price of a meal is $8 per meal and students buy 2,000 meals per week.
The price of a meal is $7 per meal and students buy 2,250 meals per week.
Use the data and graph below to complete the following.
Plot the data points onto the graph. Use all necessary labels.
Suppose Miley Cyrus only charges $60 per ticket. Draw this price ceiling on the graph
What is the equilibrium price and quantity in this market?
Price:# # $#
Quantity:
If the price Miley Cyrus charges for each ticket is below equilibrium, why doesn’t she raise her prices?
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Similar questions
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- Suppose the government sets a price ceiling above the equilibrium price for milk. Which of the following will be the result?arrow_forwardThe Ministry of Misallocation has decreed that the production of widgets must be 2000 each month and the production of gizmos must be 14000 each month Calculate the deadweight loss in each market caused by these restrictions. Please note the scale of the quantity axis is in thousands Price of widgets Price of gizmos $10 $100 90 80 70 60 50 9 8 4 3 2 T 0 Supply Demand 1 2 3 4 5 6 7 8 9 10 Quantity of widgets (in thousands) A4,000 in widgets and 180,000 in giamos O88,000 in widgets and 160,000 in gizmos OC 16,000 in widgets and 300,000 in gizmos OD.16,000 in widgets and 320,000 in gizmos OE4,000 in widgets and 360,000 in gizmos 8 8 8 8 8 40 30 20 10 0 Supply Demand 2 4 6 8 10 12 14 16 18 20 Quantity of gizmos (in thousands)arrow_forwardSuppose that initially, the gasoline market is in equilibrium. War in the Middle East disrupts imports of oil into the United States shifting the supply curve to S2. The price of gasoline begins to rise, and consumers protest. The government intervenes and sets a price ceiling of $3 per gallon. Use the graph below to answer questions What is the original equilibrium price and quantity? What is the equilibrium price and quantity after the Middle East war begins (S2)? If the price ceiling is imposed, what will occur? A surplus or shortage? Are consumers better off with the price ceiling than without it? Explain. How are suppliers affected?arrow_forward
- Suppose that the United States and the European Union impose a price ceiling on crude oil of $25 per barrel. Explain, and illustrate graphically, how this would affect the markets for crude oil and for gasoline in the United States and in the European Union.arrow_forwardThe figure illustrates the market for apples in which the government has imposed a price floor of $12 per crate. How many crates of apples will be sold after the price floor has been imposed? million crates of apples per year. (Enter your response as an integer.) Will there be a shortage or surplus? If there is a shortage or surplus, how large will it be? million crates of apples There will be a of per year. (Enter your response as an integer.) Will apple producers benefit from the price floor? O A. Apple producers who are able to sell their apples at the $12 price per crate will benefit. B. Apple producers who are not able to sell their apples will not benefit. OC. Total revenue for apple producers as a group will decrease from $220 million to $216 million. D. Both a and b. E. All of the above. Price 20- 18- 16- 14- 12- 10- 8- 6- 4- 2- 0- 0 4 Supply Demand 8 12 16 20 24 28 32 36 Quantity (millions of crates per year) 40arrow_forwardplease plot a graph showing the effect of a government subsidy on the market for surgical masks.arrow_forward
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