Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Question
Chapter 6, Problem 6MCQ
To determine
To find:
The option that correctly explains the reason for market failure.
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Students have asked these similar questions
__________________ is the price ceiling above which there is no demand for a product:
Select one:
a. Production costs
b. Customer's perception of value
c. Maximum selling price
d. Competitor's prices
What is the value of consumer surplus after the
imposition of the ceiling? A) $120,00 B) $230,00 C) $
270,00 D) $430,00 | E) $460,000
Price
(dollars
per month)
$2,300
2,000
1,500
1,000
600
C
ง
0
200
300
500
Supply
Demand
Quantity
(apartments)
Price
$150
200
250
300
350
400
450
500
550
600
650
1. Equilibrium price $350
2. Quantity 50
3. Consumer Surplus? 6250
4. Producer Surplus? 6250
500
7. Remove the tax. Imposes a price floor $100 below the equilibrium price
a Fiquilibrium price $350
and quantity? 50
Quantity Demanded
100
90
5. What is the total surplus? 12500
6. Suppose a $200 unit tax is placed on the good being sold. How much tax revenue is to be made? 4000
b. Resulting amount of surplus/shortage if any (0 if none) 0
8. Remove the price floor Impose a price ceiling $50 below the equilibrium price
a Equilibrium price $350
and quantity? 50
b. Resulting amount of surplus/shortage (0 if none) o
80
70
60
50
40
30
20
10
0
Quantity Supplied
10
20
30
40
50
60
70
80
90
100
.
How much deadweight loss is created (0 if none)?
Chapter 6 Solutions
Foundations of Economics (8th Edition)
Ch. 6 - Prob. 1SPPACh. 6 - Prob. 2SPPACh. 6 - Prob. 3SPPACh. 6 - Prob. 4SPPACh. 6 - Prob. 5SPPACh. 6 - Prob. 6SPPACh. 6 - Prob. 7SPPACh. 6 - Prob. 8SPPACh. 6 - Prob. 9SPPACh. 6 - Prob. 10SPPA
Ch. 6 - Prob. 11SPPACh. 6 - Prob. 12SPPACh. 6 - Prob. 1IAPACh. 6 - Prob. 2IAPACh. 6 - Prob. 3IAPACh. 6 - Prob. 4IAPACh. 6 - Prob. 5IAPACh. 6 - Prob. 6IAPACh. 6 - Prob. 7IAPACh. 6 - Prob. 8IAPACh. 6 - Prob. 9IAPACh. 6 - Prob. 1MCQCh. 6 - Prob. 2MCQCh. 6 - Prob. 3MCQCh. 6 - Prob. 4MCQCh. 6 - Prob. 5MCQCh. 6 - Prob. 6MCQCh. 6 - Prob. 7MCQ
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