6 2. With no penalty on buyers, if a penalty for breaking the law is imposedon sellers at more than $5 a disc, the equilibrium price of an illegal discⒸA. falls below $3 and the quantity sold decreasesB. rises and the quantity sold decreasesOC. rises and the quantity sold increasesOD. rises to a price between $3 and $8 and the equilibrium quantitydoes not change3. The graph shows the market for illegal discs.Suppose a penalty for breaking the law is imposed on buyers at $6 a discThere is no penalty on the sellerDraw a curve to show the effect of this event Label itDraw a point at the new equilibrium price and new equilibrium quantity14-1210&64-on vay ve VUJUAN SPALANIA HE WIE QUESTIONQQCPrice (dollars per DVD)32Quantity (millions of DVDs per year)>>> Draw only the objects specified in the question

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2. With no penalty on buyers, if a penalty for breaking the law is imposed on sellers at more than $5 a disc, the equilibrium price of an illegal disc OA. falls below $3 and the quantity sold decreases B. rises and the quantity sold decreases OC. rises and the quantity sold increases OD. rises to a price between $3 and $8 and the equilibrium quantity does not change

2. With no penalty on buyers, if a penalty for breaking the law is imposed on sellers at more than $5 a disc, the equilibrium price of an illegal disc OA. falls below $3 and the quantity sold decreases B. rises and the quantity sold decreases OC. rises and the quantity sold increases OD. rises to a price between $3 and $8 and the equilibrium quantity does not change

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter4: Supply And Demand: An Initial Look

Section: Chapter Questions

Problem 3TY

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