Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 7, Problem 7SPPA
To determine
To compute:
The market price of mushrooms, the
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QUESTION 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?
PRICE [Dolars per laptop)
The following diagram shows supply and demand in the market for laptops.
150
Demand
135
120
105
90
75
60
45
30
15
Supply
°
1
0
35 70 105 140 175 210 245 280
QUANTITY (Millions of laptops)
315
350
Fill in the following blanks with integer values:
The market price is
The market quantity is
The consumer surplus is 4200
The producer surplus is 4200
The total surplus is 8400
A price ceiling is imposed at $60.
The market price is now
There is now a (surplus/shortage/none)
Is there deadweight loss (yes/no)?
of what amount?
How much if any?
If a price floor is implemented at $65, would it be binding? (yes/no)
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
Note:-
Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
Answer completely.
You will get up vote for sure.
Chapter 7 Solutions
Foundations of Economics (8th Edition)
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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- The table shows the demand and supply schedules for on-campus housing. If the college puts a rent ceiling on rooms of $350 a month, rent is $7 and the number of rooms rented is 4. The on-campus housing market is inefficient Rent (dollars per month) 250 275 300 325 350 375 Quantity demanded 2,500 2,250 2,000 1,750 1,500 1,250 (rooms) Quantity supplied 2,000 2,000 2,000 2,000 2,000 2,000 Nextarrow_forwardFigure 4-3 Price (dollars per pound) $21 18 15 13 11 0 40 80 Supply Demand Quantity (pounds) Figure 4-3 shows the market for tiger shrimp. The market is initially in equilibrium at a price of $15 and a quantity of 80. Now suppose producers decide to cut output to 40 in order to raise the price to $18. Refer to Figure 4-3. What is the value of the deadweight loss at the equilibrium price of $15? $0 $40 $60 $100arrow_forwardA recent study found that the demand and supply schedules for Anti-virus software are as follows: Price per Anti-virus Software Quantity Demand Quantity Supply 11$ 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: College students demand a reduction in the price of Anti-virus software. As a result, government impose a price ceiling $7. What is the new market price? How many Anti-virus software are sold? What situation it will causes? Explain with graph.arrow_forward
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