b. With the aid diagrams show the differences between the following: i. Increase in demand and increase in quantity demand ii. Decrease in supply and decrease in quantity supplied iii. Price ceiling and price floor
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b. With the aid diagrams show the differences between the following:
i. Increase in
ii. Decrease in supply and decrease in quantity supplied
iii.
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- With the aid diagrams show the differences between the following:I. Increase in demand and increase in quantity demand II. Decrease in supply and decrease in quantity suppliedIII. Price ceiling and price floorDefine price ceiling and price floor and give an example of each. Which leads to shortage and which leads to shortage?An effective price floor causes the quantity exchanged to _______ and the price of the product to ______ compared to the market equilibrium. Question 4Answer a. decrease, decrease b. increase, increase c. increase, decrease d. decrease, increase
- What is a the typical result of a price floor? Question 29 options: a) quantity supplied equals quantity demanded. b) Customers unable to obtain the product c) excess demand. d) excess supply.All the governments in the world are using price floor for farmers because____________. a. All of these b. it gives good income to the farmers c. it ensures supply of farm products d. it makes farmers continue to produce the same farm product50. All the governments in the world are using price floor for farmers because____________. a. it gives good income to the farmers b. it makes farmers continue to produce the same farm product c. it ensures supply of farm products d. All of these
- Markets seek equilibrium, and the demand for goods and services will come to an equilibrium with supply of goods and services. When markets are not in equilibrium, surpluses and shortages, as well as underground markets, can exist. Sometimes, the government may want to intervene in markets to try to help reduce economic hardships. Analyze the impact of an increase in the minimum wage from the current level to $15 per hour. How would the following be affected? a. employment of people previously earning less than $15 per hour b. the unemployment rate of teenagers c. the availability of on-the-job training for low-skilled workers d. the demand for high-skilled workers who are good substitutes for low-skilled workers Review the mechanics of price floors and price ceilings. Why does a price floor lead to surpluses? Why does a price ceiling lead to shortages? Review consumer and producer surplus. A price floor will lead to a transfer of consumer surplus to producer…When the market price is lower than the equilibrium price, the result is excess ____.When the market price is higher than the equilibrium price, the result is excess _____. Question 1Answer a. Supply; demand b. Demand; demand c. Demand; supply d. Supply; supplyExplain why price controls have resulted in shortages of basic foodstuffs in the shops in Venezuela. Use a demand and supply diagram to support your answer
- D. Instead of a ceiling, suppose the government places a price floor of $18. Explain the effect of the price floor.E. Highlight the difference between a change in demand and a change in quantity demanded.F. Identify ONE (1) factor that could lead to a rightward shift in the supply curve.18. Which of the following will be carried out by the government when there is price floor __________. a. Export of goods. b. Hoarding of goods c. Import goods. d. Selling of goods to customersOmani government wanted to reduce the supply of high sugar drinks in the economy. As an economist, you will ask the government to _________. a. Increase Tax on the high sugar drinks b. Decrease Tax on the high sugar drinks c. Provide access to new technology for the producers of high sugar drinks d. Give more subsidies to the producers of high sugar drinks
