(Figure: Government Price Controls) Refer to the figure. If the government sets the price ceiling at $31, there will be: " 31 17 3 ° a. a shortage of 15 units. b. no effect on the market. c. a supply of 20 units. d. a surplus of 15 units.
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- Does a price ceiling change the equilibrium price?The table below shows the total demand and supply for bushels of wheat per month. Price per bushel ($) Demand Supply (*000) ('000) 85 3.40 72 80 3.70 73 75 4.00 75 70 4.30 77 65 4.60 79 60 4.90 81 Required: The government concluded to establish a price ceiling for bushels of wheat at $3.70. Explain the effect of such action by the government. (i)ges Table Illustrations Add-ins Media Links Comment Header & Text Symbols Footer 7 b_Kad 2.xlsx Price 10t Supply 6 3+.... Demand Shots 60 120 160 210 300 Quantity 27. Refer to the graph above. With an effective price ceiling at $3, the quantity supplied: A) falls from 210 to 120. B) falls from 120 to 60. C) increases from 120 to 210. D) increases from 60 to 120. la_Kac II_2 28. Refer to the graph above. With the effective price ceiling the quantity bought is: A) 60 B) 210 c) 160 d) 120 29. Refer to the graph above. With the effective price ceiling at $3, total consumer surplus will be: A) $240 B) $360 d) S300 d) $150 ductio Shot 7.01 PM
- 02. What would be the impact of a price ceiling of $ 9 (a) a shortage of 12 units. (b) a shortage of 9 units. (c) a new equilibrium quantity would be established. (d) a surplus of 20 units. (e) a surplus of 12 units.. Which statement best explains how a price ceiling affects the market for gasoline? It can cause more gasoline producers to enter the market. It can lead to producers increasing their production costs for gasoline. It can cause shortages in the supply of gasoline. It can lead to a decrease in the demand from consumers for gasoline.25.)A binding price ceiling is imposed in the market. the equilibrium price and creates a a.) Above, surplus b.) Below, surplus c.) Above, shortage d.) Below, shortage
- 5. Consider the following is the demand and supply for basketballs in Germany. Demand 700 600 500 400 300 200 100 Supply 0 0 100 200 300 400 500 Price (€) 2.00 2.50 3.00 3.50 4.00 4.50 5.00 a. Sketch the demand and supply curves. What would be the equilibrium price and quantity? b. Suppose the government imposes a €0.5 tax per basketball on the producers. Find the new equilib- rium price and quantity. Add the new supply curve to your graph. c. Now, assume the government changes the tax by switching it from the producer to the consumer. What will be the new equilibrium price and quantity? Add the new demand curve to your graph from part (b).24 20 S: 12 8 * 4 8 12 16 20 24 Q 10 WL D 一国 P. 16 4.1. Using the following Supply and Demand schedules for bicycles to answer the questions below. Quantity Demanded (Qd) Price Quantity Supplied (Qs) $300 60 30 400 55 40 500 50 50 600 45 60 700 40 70 800 35 80 a. In response to lobbying by the Bicycle Ridders Association, Congress places a price ceiling of $700 on bicycles. What effect will this have on the market for bicycles? Why? b. In response to lobbying by the same Bicycle Ridder Association, Congress places a price ceiling of $400 on bicycles, Using the information above, impose the price ceiling. What is the result of the price ceiling of $400 on bicycles?
- 3. The market supply and demand for a product are shown in the diagram below. $10 $6 Supply Demand 80 200 QUANTITY (a) Is the price elasticity of supply less than one, equal to one, or greater than one? Explain. (b) Calculate consumer surplus at the equilibrium price. Show your work. (c) Now suppose the govermment imposes a per-unit tax of $1 on producers. (i) What happens to total revenue received by producers after they pay the tax to the government? Explain. (ii) Will producer surplus increase, decrease, or stay the same? (iii) Will total surplus increase, decrease, or stay the same? Explain. PRICEQUESTION 13 Price Quantity Demanded Quantity Supplied 10 2 million 20 million 16 12 19864 9 5 4 6 MEIFFTIATIE 10 12 4 0 The chart above provides the demand & supply schedules for yoga mats in California. Suppose that a price ceiling of $6 is implemented. Which of the following is not true? OA. There is a shortage in the market. OB. The market is in equilibrium since everyone who wants it is getting to purchase it. OC. The price ceiling is binding OD. There may be some inefficiency due to this price control.1-Which of the following factor is affecting supply negatively? a. Tax b. Subsidy c. Technology d. Favorable climate
