MACROECONOMICS FOR TODAY
10th Edition
ISBN: 9781337613057
Author: Tucker
Publisher: CENGAGE L
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Question
Chapter 4, Problem 5SQ
To determine
The cost imposed on the consumer other than the consumer of a good.
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Click on the icon to read the news clip, then answer the following questions.
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The graph shows the market for milk in Venezuela when a price control is in effect.
Draw a shape that represents:
1) consumer surplus. Label it CS.
2) producer surplus. Label it PS.
3) the deadweight loss. Label it DWL.
Also draw a shape that show the resources lost from time spend in line. Label it
Loss.
Moving from a milk market with no price controls to a milk with price controls
consumer surplus and
producer surplus.
OA. increases; decreases
OB. decreases; increases
Oc. increases; increases
OD. decreases; decreases
In the market for cheese,
OA. the price is below the market equilibrium
9
O
60-
50-
40-
30-
20-
Price (bolivars per gallon)
10+
0
40
$
100
Price
control
300
200 300 400 500 600 700
Quantity (gallons of milk)
>>> Draw only the objects specified in the question.
D
Next
Click on the icon to read the news clip, then answer the following questions.
The graph shows the market for milk in Venezuela when a price control is in effect.
Draw a shape that represents:
1) consumer surplus. Label it CS.
2) producer surplus. Label it PS.
3) the deadweight loss. Label it DWL.
Also draw a shape that show the resources lost from time spend in line. Label it
Loss.
Moving from a milk market with no price controls to a milk with price controls
consumer surplus and
producer surplus.
OA. increases; increases
OB. increases; decreases
OC. decreases; increases
OD. decreases; decreases
In the market for cheese,
OA. consumer surplus decreases and producer surplus decreases
60-
50-
40-
30
20-
10-
Price (bolivars per gallon)
0
40
$
300
200 300 400 500 600 700
Quantity (gallons of milk)
>>> Draw only the objects specified in the question.
100
Price
control
D
Next
SOU
If a price ceiling is not binding, then
a. the market will be less efficient than it would be without the price ceiling.
b. there will be a surplus in the market.
c. there will be a shortage in the market.
d. there will be no effect on the market price or quantity sold.
Chapter 4 Solutions
MACROECONOMICS 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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