Refer to the accompanying table to answer the next four questions. Market for Public Transportation Price Quantity Demanded Quantity Supplied $0.75 $1.00 $1.25 $1.50 $1.75 $2.00 100,000 65,000 80,000 92,000 86,000 80,000 75,000 68,000 86,000 100,000 115,000 116,000 What is the amount of the shortage or surplus in the market for public transportation when the price ceiling is $1.00? a) a surplus of 86,000 O b) a shortage of 75,000 Oc) a shortage of 40,000 d) a surplus of 100,000 e) a shortage of 12,000
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- Price per litre ($) Quantity Demanded in 000 Quantity Supplied in 000 litres (per Month) litres (per month) 11 . 0 27 10 2 25 9 4 23 8 6 20 7 8 17 6 10 15 5 12 12 4 14 10 3 16 7 2 18 5 1 3 3 Construct the demand and supply curves for gasoline to show the market equilibrium for gasoline. Given a new government policy in Microland, Gasoline producers have started to obtain subsidies from the government. Construct a NEW diagram to show the impact of the subsidy on the market equilibrium. Explain the effect of the subsidy on the market forces and the equilibrium point. Describe THREE (3) other changes that could have the same effect on market supply of gasoline as the imposition of the subsidy in (B) above. Nb. Please answer question number 4.Price per litre ($) Quantity Demanded in 000 Quantity Supplied in 000 litres (per Month) litres (per month) 11 0 27 10 2 25 9 4 23 8 6 20 7 8 17 6 10 15 5 12 12 4 14 10 3 16 7 2 18 5 1 3 3 Given a new government policy in Microland, Gasoline producers have started to obtain subsidies from the government. Construct a NEW diagram to show the impact of the subsidy on the market equilibrium.Use the data table below for this problem. Explain what happens in the market in each question: Q Demanded and Q Supplied, Surplus or Shortage by how many gallons. Question b: Use price support of $8.00. Question c: Change price ceiling to $6.00. Do not submit graphs Price per Gallon Quantity Demanded (millions of gallons) Quantity Supplied (millions of gallons) $8.00 200 400 $7.50 250 350 $7.00 300 300 $6.50 350 250 $6.00 400 200
- This was all one question on my worksheet 1.The state of California has recently been experiencing high electricity prices. The government has yet to intervene in the market. Therefore, the Demand curve intersects the Price axis at $12. The Supply Curve intersects the Price Axis at $0. Equilibrium Price is $4 and Equilibrium Quantity is 5,500. Draw a representative market. Make sure to label all pieces. Calculate Consumer Surplus (without a price ceiling) Calculate Producer Surplus (without a price ceiling.) To combat high energy prices, the Governor of California wants to regulate electricity with price ceilings. Examine the effect of a price ceiling on electricity. What is a price ceiling? If the price ceiling is set at $2. Quantity demanded is 8,000 units and there is a shortage of 5,725 units. What is Quantity supplied? Draw and Calculate Consumer Surplus (with the price ceiling.) Draw and Calculate Producer Surplus (with the price ceiling.) Draw the Deadweight loss. What…The table below shows the demand and supply schedule for gasoline in a hypothetical country called Microland. Price per litre ($) Quantity Demanded in 000 Quantity Supplied in 000 litres (per Month) litres (per month) 11 . 0 27 10 2 25 9 4 23 8 6 20 7 8 17 6 10 15 5 12 12 4 14 10 3 16 7 2 18 5 1 3 3 1a. Construct the demand and supply curves for gasoline to show the market equilibrium for gasoline. 1b. Given a new government policy in Microland, Gasoline producers have started to obtain subsidies from the government. Construct a NEW diagram to show the impact of the subsidy on the market equilibriumSubsidies: Definition Explain why governments provide subsidies. Draw a diagram to show a subsidy, and analyze the impacts of a subsidy on market outcomes. Discuss the consequences of providing a subsidy on the stakeholders in a market, including consumers, producers and the government (EVALUATE). Calculate the effects on markets and stakeholders of subsidies
- demand equations QD = 3550 - 266P supply equations QS = 1800 + 240P Calculate initial consumer surplus and producer surplus. Now assume that government intervenes in the market through ceiling price (assume a value) and or floor price (assume a value). Find the change in welfare (DWL) loss and the new consumer surplus and producer surplus. Do you support these types of interventions?The next 3 questions involve the following supply and demand equations. Supply: q = 15 + (1/4)p Demand: q = 90 − (1/2)p 6. What is the market equilibrium?1 (A) p∗ =140,q∗ =50 (B) p∗ = 56.25, q∗ = 29.07 (C) p∗ = 29.07, q∗ = 160 (D) p∗ =100,q∗ =40 7. The government enacts a price ceiling of $80. What is the surplus (quantity supplied minus quantity demanded)? (A) 15. (B) 10. (C) 25. (D) None of the above 8. What is the Deadweight Loss under a price ceiling of $80? (A) $875. (B) $350. (C) $525. (D) None of the above.na particular market, 3,000 products are sold every month. A new government policy restricts the quantity sold to 2,500. This allows sellers of the product to raise prices, increasing producer surplus in the market by $7, 000, but decreasing consumer surplus by $9,000. What is the deadweight loss associated with the policy? $500 $2,000 $9,000 $16,000 don't use ai answer,i will upvote
- PRICE 20 18 16 14 12 10 12 8 6 4 Demand 2 Supply... 4 68 10 12 14 16 18 20 QUANTITY Refer to Figure 6-5. A government-imposed price of $12 in this market is an example of a nonbinding price ceiling that creates a shortage. binding price floor that creates a surplus. binding price ceiling that creates a shortage. O nonbinding price floor that creates a surplus. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Price per dozen Dozens of doughnuts Dozens of doughnuts demanded supplied $5.00 12,000 24,000 4.25 15,000 21,000 3.50 18,000 18,000 2.75 21,000 15,000 2.00 25,000 10,000 12. Suppose now instead that, instead of a subsidy, the government enters the market to support a price of $4.25 per dozen. How many dozens of doughnuts will the government need to buy?The state of California has recently been experiencing high electricity prices. The government has yet to intervene in the market. Therefore, the Demand curve intersects the Price axis at $12. The Supply Curve intersects the Price Axis at $0. Equilibrium Price is $4 and Equilibrium Quantity is 5,500. a.Draw a representative market. Make sure to label all pieces. b.Calculate Consumer Surplus (without a price ceiling) c.Calculate Producer Surplus (without a price ceiling.) d.To combat high energy prices, the Governor of California wants to regulate electricity with price ceilings. Examine the effect of a price ceiling on electricity. e.What is a price ceiling? If the price ceiling is set at $2. Quantity demanded is 8,000 units and there is a shortage of 5,725 units. What is Quantity supplied? f.Draw and Calculate Consumer Surplus (with the price ceiling.) g.Draw and Calculate Producer Surplus (with the price ceiling.) h.Draw the Deadweight loss. What does this represent?