Demand and supply in the banjo market are Qd = 10 - P and Qs=P. Suppose the government wants to make banjos more affordable and sets a price ceiling at P = 8. The deadweight loss from the price ceiling is
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- USD.13 An increase in a price ceiling will change the amount of a good sold in a market: Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a if the price ceiling is effective. b regardless of whether or not the ceiling is effective. c if the price ceiling is ineffective. d if demand is inelastic.If you are a seller in this business, what would happen tomarket supply if the government sets a price ceiling below P30?If a price ceiling is set below the equilibrium price in a market, A. raioning will be necessary. B. surpluses of the commodity will develop. C. the quantity demanded will exceed the quantity supplied. D. tje quantity supplied willexceed the quantitiy demanded.
- In a market with a binding price cei ling, an increasein the cei ling will ___ t he quantity suppl ied, ___ t he quantity demanded, and reduce thea. increase, decrease, surplusb. decrease, increase. surplusc . increase, decrease, shortaged. decrease, increase, shortageWhich 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 producersThere is a price ceiling of $2000. Click on the market price and quantity (assuming the law is strictly followed). tental Price 6000 4000 2000 0 1000 OD E' 2000 QE S 3000 4000 0$ D 5000 6000 Numb Your answer
- In which of the following cases would government intervention in a market result in an increase in quantity sold? Levying a per-unit tax on producers Providing producers of a product with a B per-unit subsidy A E Setting a price floor above equilibrium price Setting a price ceiling above equilibrium price boowlsbr D Setting a price ceiling below equilibrium price /1If the government imposes a price ceiling at $14, and the equilibrium price is at $10 in this market, the result would be a. A shortage b. A surplus c. A new equilibrium price d. Neither a surplus or a shortage1. Use the data from the chart above. If you are a seller in this business, what would happen tomarket supply if the government sets a price ceiling below P30?
- The equations describing demand and supply curves for pizzasare given as follows:Q= 500 –P and Q= 2P + 200. a.What is the equilibriumpriceand quantity? b.Suppose that the price levelis set by the government at $150. Will there be a shortage or surplus? Explain why . What is the size of the surplus or shortage ?Which causes a shortage of a good----- a price cieling or a price floor? Justify your amswer with a graph .Refer to the figure below. If the government sets a price ceiling of $6, 18 16 14 12 10 8 6 4 2 D₁ 24 6 8 10 12 14 16 18 there would be a shortage of 14 units. O there would be an excess supply of 6 units. O There would be a shortage of 4 units. consur ers would demand 14 units.
