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Use the accompanying graph to answer these questions. S¹ sº 20 Price of X ($) 18 16 14 12 10 8 6 4 2 0 Shortage: 1 2 3 Number of units sold: Quantity of Good X a. Suppose demand is D and supply is SO. If a price ceiling of $6 is imposed, what are the resulting shortage and full economic price? Producer surplus: $ 4 O False Full economic price: $ b. Suppose demand is D and supply is so. If a price floor of $12 is imposed, what is the resulting surplus? What is the cost to the government of purchasing any and all unsold units? True 5 Surplus: units Cost to government: $ c. Suppose demand is D and supply is SO so that equilibrium price is $10. If an excise tax of $6 is imposed on this product, what happens to the equilibrium price paid by consumers? The price received by producers? The number of units sold? Equilibrium price paid by consumers: $1 Price received by producers: $1 6 c. Suppose demand is D and supply is SO so that equilibrium price is $10. If an excise tax of $6 is imposed on this product, what happens to the equilibrium price paid by consumers? The price received by producers? The number of units sold? Equilibrium price paid by consumers: $ Price received by producers: $ D units d. Calculate the level of consumer and producer surplus when demand and supply are given by D and so respectively. Consumer surplus: $ e. Suppose demand is D and supply is SO. True or False: A price ceiling of $2 would be beneficial to consumers?

Use the accompanying graph to answer these questions. S¹ sº 20 Price of X ($) 18 16 14 12 10 8 6 4 2 0 Shortage: 1 2 3 Number of units sold: Quantity of Good X a. Suppose demand is D and supply is SO. If a price ceiling of $6 is imposed, what are the resulting shortage and full economic price? Producer surplus: $ 4 O False Full economic price: $ b. Suppose demand is D and supply is so. If a price floor of $12 is imposed, what is the resulting surplus? What is the cost to the government of purchasing any and all unsold units? True 5 Surplus: units Cost to government: $ c. Suppose demand is D and supply is SO so that equilibrium price is $10. If an excise tax of $6 is imposed on this product, what happens to the equilibrium price paid by consumers? The price received by producers? The number of units sold? Equilibrium price paid by consumers: $1 Price received by producers: $1 6 c. Suppose demand is D and supply is SO so that equilibrium price is $10. If an excise tax of $6 is imposed on this product, what happens to the equilibrium price paid by consumers? The price received by producers? The number of units sold? Equilibrium price paid by consumers: $ Price received by producers: $ D units d. Calculate the level of consumer and producer surplus when demand and supply are given by D and so respectively. Consumer surplus: $ e. Suppose demand is D and supply is SO. True or False: A price ceiling of $2 would be beneficial to consumers?

Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
8th Edition
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter7: Consumers, Producers, And The Efficiency Of Markets
Section: Chapter Questions
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Please solve part d and e.... Thank you
Use the accompanying graph to answer these questions. S¹ sº 20 Price of X ($) 18 16 14 12 10 8 6 4 2 0 Shortage: 1 2 3 Number of units sold: Quantity of Good X a. Suppose demand is D and supply is SO. If a price ceiling of $6 is imposed, what are the resulting shortage and full economic price? Producer surplus: $ 4 O False Full economic price: $ b. Suppose demand is D and supply is so. If a price floor of $12 is imposed, what is the resulting surplus? What is the cost to the government of purchasing any and all unsold units? True 5 Surplus: units Cost to government: $ c. Suppose demand is D and supply is SO so that equilibrium price is $10. If an excise tax of $6 is imposed on this product, what happens to the equilibrium price paid by consumers? The price received by producers? The number of units sold? Equilibrium price paid by consumers: $1 Price received by producers: $1 6 c. Suppose demand is D and supply is SO so that equilibrium price is $10. If an excise tax of $6 is imposed on this product, what happens to the equilibrium price paid by consumers? The price received by producers? The number of units sold? Equilibrium price paid by consumers: $ Price received by producers: $ D units d. Calculate the level of consumer and producer surplus when demand and supply are given by D and so respectively. Consumer surplus: $ e. Suppose demand is D and supply is SO. True or False: A price ceiling of $2 would be beneficial to consumers?
Transcribed Image Text:Use the accompanying graph to answer these questions. S¹ sº 20 Price of X ($) 18 16 14 12 10 8 6 4 2 0 Shortage: 1 2 3 Number of units sold: Quantity of Good X a. Suppose demand is D and supply is SO. If a price ceiling of $6 is imposed, what are the resulting shortage and full economic price? Producer surplus: $ 4 O False Full economic price: $ b. Suppose demand is D and supply is so. If a price floor of $12 is imposed, what is the resulting surplus? What is the cost to the government of purchasing any and all unsold units? True 5 Surplus: units Cost to government: $ c. Suppose demand is D and supply is SO so that equilibrium price is $10. If an excise tax of $6 is imposed on this product, what happens to the equilibrium price paid by consumers? The price received by producers? The number of units sold? Equilibrium price paid by consumers: $1 Price received by producers: $1 6 c. Suppose demand is D and supply is SO so that equilibrium price is $10. If an excise tax of $6 is imposed on this product, what happens to the equilibrium price paid by consumers? The price received by producers? The number of units sold? Equilibrium price paid by consumers: $ Price received by producers: $ D units d. Calculate the level of consumer and producer surplus when demand and supply are given by D and so respectively. Consumer surplus: $ e. Suppose demand is D and supply is SO. True or False: A price ceiling of $2 would be beneficial to consumers?
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