Principles of Microeconomics (MindTap Course List)
8th Edition
ISBN: 9781305971493
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Chapter 6, Problem 4CQQ
To determine
The reason for the increase in the quantity supplied, decrease in quantity demanded, and increase in the consumer price.
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If a municipality sets a price ceiling below equilibrium for apartments in New York City,
Select one:
a. the price ceiling will create a surplus of apartments
b. the price ceiling will create a shortage of apartments
c. the price ceiling will not affect the market for apartments
d. the market for more broadway plays will increase
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Which change would cause a decrease in price and a decrease in the quantity sold? Pick a,b,c, or d
a. The granting of a subsidy to producers of the product
b. The removal of a price floor on the product maintained by government legislation and rationing
c. The granting of a subsidy to consumers of the product
d. The removal of a price ceiling on the product maintained by government legislation and purchases of surpluses
Which of the following would Increase quantitysupplied, mcrease quantity demanded, and decreasethe price that consumers pay?a. the imposition of a bmding price floorb. the removal of a binding price floorc. the passage of a tax levied on producersd. the repeal of a tax levied on producers
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Principles of Microeconomics (MindTap Course List)
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- Consumers in Nashville purchase fresh tomatoes in the summer. Consumers in Clarksville (nearby) purchase even more tomatoes. Assuming competitive markets, what should happen in Clarksville if Nashville places a tax on Nashville tomato sellers? a. The equilibrium quantity of tomatoes in Clarksville will increase; the equilibrium price will increase. b. The equilibrium quantity of tomatoes in Clarksville will decrease; the equilibrium price will decrease. c. The equilibrium quantity of tomatoes in Clarksville will decrease; the equilibrium price will increase. d. The equilibrium quantity of tomatoes in Clarksville will increase; the equilibrium price will decrease. e. Nothing will likely change in the Clarksville market.arrow_forwardThe government of Brazil wishes to regulate the grocery bags by preventing the current prices from rising, what actions should it take? * a. Set a price ceiling above the equilibrium price b. Impose a direct tax on landlords c. Grant a subsidy to landlords d. Set a price ceiling below the equilibrium pricearrow_forwardThe government is interested in imposing a tax on the local gasoline market. Using a tax modified demand, indicate in an appropriate diagram the effect of this tax on this market, labeling everything. Explain what happens to demand, supply, equilibrium price and equilibrium quantity exchanged and why. please give me correct answer with proper explanation and diagramarrow_forward
- If the government removes a tax on a good, then the quantity of the good sold will______.arrow_forwardQUESTION 4 Use the following supply and demand schedules for skate boards in table 18.1, to answer the questions 18(a). to 18(d) below. Table 18.1 Price ($) 300 Quantity Demanded Quantity Supplied 60 30 400 55 40 500 50 50 600 45 60 700 40 70 800 35 80 a. In response, to lobbying by the skate board association, the government places a price ceiling at the price of $700 on skate boards. What will this have on the market for skate boards? Explain your answer. b. In response, to lobbying by the skate board association, the government places a price ceiling of $400 on skate boards. Use the information provided in Table 18.1, to plot the supply and demand curve for skate boards. c. Use the information provided in Table 18.1, to plot the price ceiling of $400 on skateboards. d. What will be the result of a price ceiling of $400 on skate boards?arrow_forwardA recent study found that the demand and supply schedules for Anti-virus software are as follows: Price per Anti-virus Software Quantity Demand Quantity Supply 11$ 1 million Anti-virus software 15 million Anti-virus software 10 2 12 9 4 9 8 6 6 7 8 3 6 10 1 Questions: Anti-virus software manufacturers persuade the government to impose a price floor $10. What is the new market price? How many Anti-virus software are sold? What situation it will causes? Explain with a graph.arrow_forward
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