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- Identify the most accurate statement. A price floor will have live largest effect if it is set: substantially above the equilibrium price slightly above the equilibrium price slightly below the equilibrium price substantially below the equilibrium price(a) Define price ceiling and price floor and give an example of each. Which leads to a shortage? Which leads to a surplus? Why? (b) Suppose the government removes a tax on buyers of a good and levies a tax of the same size on sellers of the good. How does this change in tax policy affect the price that buyers pay sellers for this good, the amount buyers are out of pocket (including any tax payments they make), the amount sellers receive (net of any tax payments they make), and the quantity of the good sold?Imagine that to preserve the traditional way of life in small fishing villages, at government decides to impose a price floor that will guarantee all fishermen a certain price for their catch. Using the demand and supply framework, predict the effects on the price, quantity demanded, and quantity supplied. With the enactment of this price floor for fish, what are some of the likely unintended consequences in file market? Suggest some policies other than the price floor to make it possible for small fishing villages to continue.
- Suppose that Qs = 100 + 3P and a tax is placed on buyers so that Qd = 400 – (2P + T) where T is taxes. If T = 15, solve for the new equilibrium price and quantity. (Note: You are solving for the equilibrium price for sellers and buyers and the equilibrium quantity). where Qs is the quantity supplied, Qd is the quantity demanded and P is the price.Need solution!! ASAP PLEASE TYSM 1. Given the hypothetical demand of product (y) in a known market are Demand (D1) = 500, 400, 100, 200, and 300. Construct the demand curve and shift in the demand curve if prices in peso will start from 100php with an interval of 100php each. 2. Where is the shift if Demand (D2) will increase to 100? Show it graphically. 3. How will you explain the graph? 4. Use pen and graphing paper or Microsoft Excel to plot. 5. Please consider the law of demand in crafting the demand schedule.Suppose the supply and demand curves for a particular product are given by:QS = -20 + 2P QD =100 - 2Pwhere QS and QD are quantities in units and P is the price per unit. Suppose the government implements a price ceiling of $20/unit in this market. Is this price ceilingbinding on the market? What are the quantities demanded and supplied at the price ceiling? Howmany units are exchanged at this price? Given the effects of the policy, is there a potential forillegal trade? Briefly explain your answers where necessary.
- 1. What are the following represent downtrend?A. Demand > supply.B. Demand = supply.C. Demand ≠ supply.D. Demand < supply. 2. Which chart type uses more than one data point to plot a particular time interval?A. Point and FigureB. CandlestickC. LineD. Tick 3. Which of the following statements accurately describe a support level?A. Tests of a support level are normally preceded by a price advance.B. Price peaks often define a support point.C. A price level where selling is strong enough to interrupt or reverse an advance.D. A price level where buying is strong enough to interrupt or reverse a decline. 4. Technical analysis is rooted in the basic premise thatA. price behaviour in the financial markets can only be understood by analysis of the underlying economic conditions surrounding the markets. B. price behaviour in the financial markets moves in trends.C. price behaviour in the financial markets is random.D. none of the above. 5. Which of the following would be MOST important to…A market is described by the following supply and demand curves: QS=2P andQD =300-2Pa. Solve for the equilibrium price(in $) and quantity.b. Two policies have been suggested to the government i) a price floor of $90 or anii)price ceiling of $90. Which policy government can take and why?c. For the adopted policy in b) what will be the price, quantity demand, quantitysupply, shortage, and surplus?Let (inverse) demand be Pb= 101-3 Qb and (inverse) supply be Pv = 16+3 Qv. Consider the PRICE CEILING (P_low) depicted, what is the reduction in tradecaused by the PRICE CEILING?
- . The government has decided that the free-marketprice of cheese is too low.a. Suppose the government imposes a binding pricefloor in the cheese market. Draw a supply-anddemand diagram to show the effect of this policyon the price of cheese and the quantity of cheesesold. Is there a shortage or surplus of cheese?b. Producers of cheese complain that the price floorhas reduced their total revenue. Is this possible?Explain.c. In response to cheese producers’ complaints, thegovernment agrees to purchase all the surpluscheese at the price floor. Compared to the basicprice floor, who benefits from this new policy?Who loses?given that Qs = 100+3P and Qd = 400 - 2P Now suppose that a tax is placed on buyers so that Qd = 400 – (2P + T) where T istaxes. If T = 15, solve for the new equilibrium price and quantity. (Note: You aresolving for the equilibrium price for sellers and buyers).1. How imposition of some tax on goods will affectlabor supply
