Macroeconomics
11th Edition
ISBN: 9781260506891
Author: Colander
Publisher: MCG
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Question
Chapter 5, Problem 15QE
(a)
To determine
Impact of the fixed license at a cost of $20 per license.
(b)
To determine
The excess or shortage condition of the economy.
(c)
To determine
The excess or shortage condition of the economy.
(d)
To determine
The changes in the market need to eliminate the excess demand.
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Students have asked these similar questions
a. Tattoo artists are required to be licensed. Use a graph to show how a licensing requirement impacts the market for tattoo artists. Show the market equilibrium if there are no license requirements and also show the market equilibrium with license requirements. What happens to consumer surplus, producer surplus, and deadweight loss when licenses are required?
b. Explain who wins and who loses from licensing regulation? Who pays for the licensing? Explain briefly.
c. Use a graph of the tattoo market to show this positive effect. Show the market equilibrium on your graph and explain how this market equilibrium compares to the market equilibrium in which this benefit is not taken into account.
e. Does licensing perform a better job of solving the asymmetric information problem than yelp or google reviews? i.e. does licensing provide a better signal of quality compared to other signals of quality such as online reviews? Explain why or why not.
Consider the market for outdoor porch swings. The following graph shows the supply and the demand curve of the good. Assume that the price of home and garden goods is regulated, and the price of outdoor swings cannot exceed Preg, also shown on the graph below. The letters A to K denote certain areas on the graph.
Is there a surplus or a shortage at the regulated price? What area represents the CS at the regulated price? What about PS? What about TS? Given the regulation, is there a DWL? If yes, what area represents this DWL?
The demand and supply of widgets is given below. Q is quantity, and P is price of widgets
Q = 5000 – 6P
Q = 1000 + 2P
How much is equilibrium quantity and equilibrium price (show me your work)
If there is a price control of $700 imposed by the government for widgets. What type of price control is this called? Does this type of price control cause a shortage or surplus, and how much is it.
Draw the Demand and Supply, and show the point for part a and b.
Chapter 5 Solutions
Macroeconomics
Ch. 5.1 - Prob. 1QCh. 5.1 - Prob. 2QCh. 5.1 - Prob. 3QCh. 5.1 - Prob. 4QCh. 5.1 - Prob. 5QCh. 5.1 - Prob. 6QCh. 5.1 - Prob. 7QCh. 5.1 - Prob. 8QCh. 5.1 - Prob. 9QCh. 5.1 - Prob. 10Q
Ch. 5.A - Prob. 1QECh. 5.A - Prob. 2QECh. 5.A - Prob. 3QECh. 5.A - Prob. 4QECh. 5.A - Prob. 5QECh. 5.A - Prob. 6QECh. 5.A - Prob. 7QECh. 5.A - Prob. 8QECh. 5.A - Prob. 9QECh. 5 - Prob. 1QECh. 5 - Prob. 2QECh. 5 - Prob. 3QECh. 5 - Prob. 4QECh. 5 - Prob. 5QECh. 5 - Prob. 6QECh. 5 - Prob. 7QECh. 5 - Prob. 8QECh. 5 - Prob. 9QECh. 5 - Prob. 10QECh. 5 - Prob. 11QECh. 5 - Prob. 12QECh. 5 - Prob. 13QECh. 5 - Prob. 14QECh. 5 - Prob. 15QECh. 5 - Prob. 16QECh. 5 - Prob. 17QECh. 5 - Prob. 1QAPCh. 5 - Prob. 2QAPCh. 5 - Prob. 3QAPCh. 5 - Prob. 4QAPCh. 5 - Prob. 5QAPCh. 5 - Prob. 1IPCh. 5 - Prob. 2IPCh. 5 - Prob. 3IPCh. 5 - Prob. 4IPCh. 5 - Prob. 5IPCh. 5 - Prob. 6IPCh. 5 - Prob. 7IPCh. 5 - Prob. 8IPCh. 5 - Prob. 9IPCh. 5 - Prob. 10IPCh. 5 - Prob. 11IPCh. 5 - Prob. 12IPCh. 5 - Prob. 13IPCh. 5 - Prob. 14IP
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