EBK FOUNDATIONS OF ECONOMICS
8th Edition
ISBN: 8220103632225
Author: PARKIN
Publisher: PEARSON
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Question
Chapter 7, Problem 1SPPA
To determine
To compute:
The amount of rent, the number of rooms that are rented and whether the on-campus housing
Expert Solution & Answer
Answer to Problem 1SPPA
The amount of rent will be $650, the number of rooms that are rented will be 1,750 and the on-campus housing market is inefficient.
Explanation of Solution
The diagram showing the calculation is as explained below:
The quantity demanded will be 1,750, and
The quantity supplied will be 2,000.
It is inefficient as there is a dead weight loss in the market (ABC).
Economics Concept Introduction
Price ceiling is the maximum price at which a good can be sold at and not anything above it. This price is established by the government.
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Students have asked these similar questions
Eq price in
ice
Quantity Demanded
Quantity Supplied
$10
10
60
$8
20
45
$6
30
30
$4
40
15
$2
50
0
Refer to the table . If the price were $8, a
Price per Ice-cream (Rs.) Demand for Ice cream (Qd) Supply for Ice cream (Qs)140 500 1500120 750 1200100 1000 100080 1250 75060 1500 60040 1750 300
(i) Draw the market equilibrium for Ice cream. (ii) Find out equilibrium price and quantity. (iii) Is there surplus or shortage in the market at price Rs.40? At price Rs.120? (iv) What is the maximum price that consumer is willing to pay for 1500 bottles? (v) What is the minimum price that producer is willing to accept for 1500 bottles?
Please solve only the bold sub parts .
Price per Ice-cream (Rs.) Demand for Ice cream (Qd) Supply for Ice cream (Qs)
140 500 1500
120 750 1200
100 1000 1000
80 1250 750
60 1500 600
40 1750 300
(1) What is the maximum price that consumer is willing to pay for 1500 bottles?
(2) What is the minimum price that producer is willing to accept for 1500 bottles?
Chapter 7 Solutions
EBK FOUNDATIONS OF ECONOMICS
Ch. 7 - Prob. 1SPPACh. 7 - Prob. 2SPPACh. 7 - Prob. 3SPPACh. 7 - Prob. 4SPPACh. 7 - Prob. 5SPPACh. 7 - Prob. 6SPPACh. 7 - Prob. 7SPPACh. 7 - Prob. 8SPPACh. 7 - Prob. 9SPPACh. 7 - Prob. 10SPPA
Ch. 7 - Prob. 11SPPACh. 7 - Prob. 1IAPACh. 7 - Prob. 2IAPACh. 7 - Prob. 3IAPACh. 7 - Prob. 4IAPACh. 7 - Prob. 5IAPACh. 7 - Prob. 6IAPACh. 7 - Prob. 7IAPACh. 7 - Prob. 8IAPACh. 7 - Prob. 9IAPACh. 7 - Prob. 1MCQCh. 7 - Prob. 2MCQCh. 7 - Prob. 3MCQCh. 7 - Prob. 4MCQCh. 7 - Prob. 5MCQCh. 7 - Prob. 6MCQCh. 7 - Prob. 7MCQCh. 7 - Prob. 8MCQ
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