Microeconomics (13th Edition)
13th Edition
ISBN: 9780134744476
Author: Michael Parkin
Publisher: PEARSON
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Question
Chapter 6.4, Problem 1RQ
To determine
The effect of production quota on the market price and the quantity produced.
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Students have asked these similar questions
If government imposes a price ceiling on a good that is below the market equilibrium price
a surplus will develop.
a shortage will develop.
producers will reduce their sales price.
consumers will reduce their demand for the good.
What will be the result of an decrease in a price ceiling for gasoline?
Group of answer choices
The quantity will decrease because the quantity demanded will decrease.
The quantity will remain the same; only the price will change.
The quantity will increase because the quantity demanded will increase.
The quantity will decrease because the quantity supplied will decrease.
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
Chapter 6 Solutions
Microeconomics (13th Edition)
Ch. 6.1 - Prob. 1RQCh. 6.1 - Prob. 2RQCh. 6.1 - Prob. 3RQCh. 6.1 - Prob. 4RQCh. 6.2 - Prob. 1RQCh. 6.2 - Prob. 2RQCh. 6.2 - Prob. 3RQCh. 6.2 - Prob. 4RQCh. 6.2 - Prob. 5RQCh. 6.3 - How does the elasticity of demand influence the...
Ch. 6.3 - Prob. 2RQCh. 6.3 - Prob. 3RQCh. 6.3 - Prob. 4RQCh. 6.3 - Prob. 5RQCh. 6.4 - Prob. 1RQCh. 6.4 - Prob. 2RQCh. 6.4 - Prob. 3RQCh. 6.4 - Prob. 4RQCh. 6.4 - Prob. 5RQCh. 6.5 - Prob. 1RQCh. 6.5 - Prob. 2RQCh. 6.5 - Prob. 3RQCh. 6.5 - Prob. 4RQCh. 6 - Prob. 1SPACh. 6 - Prob. 2SPACh. 6 - Prob. 3SPACh. 6 - Prob. 4SPACh. 6 - Taxes (Study Plan 6.3) 5.The table in the next...Ch. 6 - Prob. 6SPACh. 6 - Prob. 7SPACh. 6 - Prob. 8SPACh. 6 - Prob. 9APACh. 6 - Prob. 10APACh. 6 - Prob. 11APACh. 6 - Prob. 12APACh. 6 - Prob. 13APACh. 6 - Prob. 14APACh. 6 - Prob. 15APACh. 6 - Prob. 16APACh. 6 - Prob. 17APACh. 6 - Prob. 18APACh. 6 - Prob. 19APACh. 6 - Prob. 20APACh. 6 - Prob. 21APACh. 6 - Prob. 22APACh. 6 - Prob. 23APA
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- Taxes on producers cause the equilibrium price of a good toarrow_forwardA binding price ceiling is imposed in the market for aspirin. At the ceiling price: a) the quantity supplied of aspirin exceeds the quantity demanded. b) the quantity demanded of aspirin equals the quantity supplied. c) the quantity demanded of aspirin exceeds the quantity supplied. d) the quantity demanded of aspirin will be artificially restricted by the price ceiling.arrow_forwardA price ceiling is intended to benefit which group of people? consumers producers The Governmentarrow_forward
- The government imposes a price ceiling below the equilibrium price. Which of the following are the effects of this price ceiling? A. Shortage B. Deadweight loss C. Inefficiently low quality of the good D. Both A and B E. All of the above F. None of the abovearrow_forwardAn effective price ceiling: A. Increases the quantity supplied. B. Is set above the equilibrium price. C. Results in a surplus. D. Is set below the equilibrium price.arrow_forwardIf a binding price ceiling is imposed on the baby formula market, then Selectarrow_forward
- A price ceiling: a. would be imposed if the government believes the market equilibrium price is too low. b. is the lowest price that the law will allow to be charged in the market. c. is the price that must be charged in the market. d. is the highest price that the law will allow to be charged in the market.arrow_forwardThe imosition of a price ceiling on a market will result inarrow_forwardWhich of the following will make an extension of supply? a. Rise in price b. Rise in subsidy c. Fall in subsidy d. Fall in pricearrow_forward
- What will a price ceiling always create? Shortage surplus a clear marketarrow_forwardWhich of the following is an example of a quota? a) The United States sets a minimum or maximum price that can be charged for baked goods. b)The United States limits the number of immigrants allowed to enter the country. c) The United States sets a limit on how many firms can operate in the market for cell phones. d) The United States imposes a regulation requiring consumers to be licensed before buying pens.arrow_forward
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