When government establishes a legal minimum price for a specific good or service, it is setting aln) government establishes a legal maximum price for a specific good or service, it is setting a(n). ;when Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. price celling; price floor a b. price floor; price ceiling equilibrium price; efficient price

When government establishes a legal minimum price for a specific good or service, it is setting aln) government establishes a legal maximum price for a specific good or service, it is setting a(n). ;when Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. price celling; price floor a b. price floor; price ceiling equilibrium price; efficient price

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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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.
Which causes a shortage of a good----- a price cieling or a price floor? Justify your amswer with a graph .
A recent study found that the demand an supply for Frisbies schdules are as follows:a.What are the equilibrium price and quantity of Frisbees?b.Frisbee manufacture persuade the government that frisbee production improves scientists'understanding of areodynamics and thus is important for national security.a concern Congress votes to impose a price floor $2 above the equilibrium price.What is the new market price?How many Frisbees are sold?c.Irate college students march on washington and demand a reduction in the price of Frisbees.An even more concerned Congress votes to repeal the price floor and impose a price ceiling $1 below the former price floor.What is the new market price?How many Frisbees are sold?
Price Quantity Demanded/Month Quantity Supplied/Month $5 6,000 10,000 $4 8,000 8,000 $3 10,000 6,000 $2 12,000 4,000 $1 14,000 2,000 a. What is the equilibrium price and equilibrium quantity? b. Suppose the price is currently at $5. What problem would exist in the economy? What would you expect to happen to price? Show this on your graph. c. Suppose the price is currently $2. What problem exists in the economy? What would you expect to happen to price? Show this on your graph.
If the supply decreases and the demand decreases, a. b. C. d. the equilibrium price and quantity both decreases. the equilibrium price decreases while the equilibrium quantity increases. the equilibrium quantity decreases while the effect on price is ambiguous. the equilibrium price and quantity both increases. A a B b D d
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.
Consider a market for Ice Cream an inferior good in Pakistan. For each of the given events, identify which of the determinants of the demand or supply are affected. Also indicate whether demand or supply increase or decreases. Then draw a diagram to show the effect on the price and quantity of Ice Cream, solve all the parts and subparts and multi subparts as well. i. News reports claim that the consumption of Ice Cream is good for the health of coronavirus patients. ii. There has been a decline in wages of all employees in Pakistan due to the third wave of coronavirus. iii. People in Pakistan decide to have more children. iv. Students of NED University develop new automated machinery for the production of Ice Cream. v.There has been a decrease in people’s income due to COVID-19 crisis. i News reports claim that the consumption of Ice Cream is good for the health of coronavirus patients. Identify which of the determinants of the demand or supply are affected. Also indicate…
When the price of beef is $ 4 per kg, quantity demanded is 500 grams. but when the price changes to $3.92 then quantity demanded is 530 grams. calculate the price elassticity demand?
a. Suppose the price of sugar decreases. Then, will there be a shortage or surplus in the tea leaf market? Explain with a diagram. b. Suppose there is an increase in the wage of tea farmers. Then, will there be a shortage or surplus in the tea market? Explain with a diagram. c. How will the market clearing price and the equilibrium quantity be affected by these changes? Explain in detail with diagram.
Draw a supply and demand diagram with price on the vertical axis. 1. Show what happens in your diagram when the price of a substitute good increases. 2. What happens to the market price and quantity in your diagram?
Question 2 Consider a good with a price floor that is above the equilibrium price. If demand decreases, what will happen to the price in the market and the amount produced? Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a The price will increase and the amount produced will stay the same. b The price will stay the same and the amount produced will increase. c The price and the amount produced will increase. d The price will stay the same and the amount produced will decrease.
If 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 shortage