Suppose market demand and supply are given by Qd=100-2P and Qs=5+3P. If a price ceiling of $15 is imposed, how much shortage there will be? Show your work. How to know either it is surplus or shortage?
Q: 6. There was an unexpected burst of inflation in the late 70s and early 80s that is sometimes called…
A: Real interest rate = nominal rate - inflation( Expected or actual). And people care about the real…
Q: In the short run, the equilibrium price received by the vegetable farmers (operating in a perfectly…
A: The markets are the place where the buyers and the sellers of various goods and services tend to…
Q: Suppose market demand and supply are given by Qd=100-2P and Qs=5+3P. If a price floor of $30 is set,…
A: "Price floor is a type of price control used by the government to impose a limit on how low a price…
Q: A service car whose cash price was ₱ 540,000 was bought with a down payment of ₱ 162,000 and monthly…
A: Annuity is a payment made in a fixed interval into a deposit or annual payment made for discharge of…
Q: In the accompanying diagram, what is the value of K on the left-hand cash-flow diagram that is…
A: Given:- i=12% Left hand cash flow diagram=right hand cash flow diagram To calculate:- Value of K=?
Q: The equilibrium price means that the supply and demand for a product are in balance.True or False
A: Meaning of Microeconomics: The term macroeconomics refers to that situation under which the…
Q: Explain the concept of spatial equilibrium from the perspective of both consumers and firms. Please…
A: Spatial Equilibrium Models are models that answer the simultaneous equilibria of many regional…
Q: HW#1: Ricardian Theory of Trade - Assignment Use the following assumptions to solve this assignment:…
A: Hi! Thank you for the question. As per the honor code, We’ll answer question number 4 only. Please…
Q: Suppose the price of an M&M is $2.00, the price of Skittles is $3.00, and the budget is $24. M&Ms…
A: Budget line shows the combinations of two goods that a consumer can purchase at given market price…
Q: What does the shape of the PPF curve drawn suggest about the opportunity cost of producing ONE more…
A: A production possibility curve is a graph that depicts the many combinations of two items that can…
Q: 6. A plant's production function is Q(L,K) = 2KL + K. The price of labor services, w, is $4, and the…
A: The amount of product produced determines variable costs. Labor and raw materials are examples of…
Q: Increasing marginal returns to labor A) describe the portion of a total product curve where the…
A: Marginal returns of labor is the additional output produced by employing an additional unit of…
Q: 2. Imports and Exports Now we allow for international trade. Use the following information from…
A: The transfer of capital, goods, and services across international borders or territories to meet a…
Q: What sort of event could lead to a simultaneous decrease in both inflation rate and the unemployment…
A: Inflation is defined because the rate at which prices rise over time. Inflation is sometimes defined…
Q: The cost of sunflower seeds has increased. Sunflower seeds are an input when sunflowers are…
A: The demand and supply curve together intersects in the market to determine the equilibrium price.…
Q: Please answer What are some of the major developments in trade over the past two decades? What are…
A: Economic development is basically the process of improving a nation's, region's, local community's,…
Q: . Why is it that trade restrictions must be put in place? Provide a short example.
A: The buying and selling of commodities and services, with payment paid by a buyer to a seller, or the…
Q: 2. The cash flows associated with a public- school building repair project are as follows: costs…
A: B/C is the ratio of total benefits to total costs.
Q: Give at least one way in which communication can participate in local economic planning
A: Introduction In the evolving international viewpoint, it is no longer possible to reject the…
Q: Jean deposited P1,000, P1,500 and P2,000 at the end of the 2nd year, 3rd year and 4th year,…
A: Given Information Jean Deposits At the end of 2nd year=P1000 At the end of 3rd year=P1500 At the end…
Q: Fl in the blariks When a country's income is PHP20008, you spent PHP1,75o When your income changed…
A:
Q: For ten years, a man inherited a 100,000 endowment every three months. He may, however, elect to…
A: According to the question, Value of Principal = 100,000 Time period = 4 years compounded quarterly…
Q: Which of the following trade policies limits specific quantity of goods to be imported at one tariff…
A: In an economy, there are various methods to reduce the amount of goods and services imported by the…
Q: Aggregate demand shifts left if: taxes rise and shifts left if stock prices rise. taxes rise…
A: The curve that depicts various quantities of goods and services being demanded at different price…
Q: The B/C ratio of an investment of $10,000 that provides a benefit of $1,500 at the beginning every…
A: Given Data, Investment = $10,000 Benefit of $1,500
Q: A perfectly competitive firm's production function is Q=4LK where Q is the amount produced, L is the…
A: Marginal product of labour refers to the change in total product when an additional unit of labor is…
Q: Do consumer behavior strategic recommendations- Words Required: 600
A: Consumer is a person or an individual who buys goods and services at a common price. It is the price…
Q: how does Socio-economic Factors Affect Investors and Suppliers explain each briefly.
A: Socio-economic factors The term "socio-economic" relates to societal economic issues. These elements…
Q: 7. Two towns, each with three residents, are deciding whether to put on a fireworks display to…
A: A cost-benefit analysis is a cycle used to quantify the advantages/benefits of a choice or making a…
Q: 3. Consider an auction wheren identical objects are offered, and there are (n + 1) bidders. The…
A: The bidder's income has an impact on the bidding strategy since, above a certain price, the person…
Q: Firms under monopolistic competition earn zero profit because a) There is not enough demand.…
A: Monopolistic competition is a type of market wherein many firms are present which produce homogenous…
Q: 8-28 A firm is considering three mutually exclusive alter- natives as part of a production…
A: Production is the process of merging numerous material and immaterial inputs (plans, information) to…
Q: The production function q = K1.2 + 3L1.2 exhibits [increasing return to scale, constant return to…
A: production function, in financial matters, is a condition that communicates the connection between…
Q: Compare the interest earned by $9,000 for six years at 7% simple interest with interest earned by…
A: Simple interest and compound interest are earned on initial amount deposited but with sufficiently…
Q: “ The Third Wave in coffee refers to the growth of small, independent coffee roasters who developed…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts. In…
Q: The figure below shows Angela and Bruno's feasible frontier, Angela's biological survival…
A: When Angela's work hours are determined in such a way that the slope of Angela's reservation…
Q: come falls, then the IS curve shifts to the left, leading to less output and a lower come falls,…
A: In the context of IS LM the behaviour can be explained as follows:
Q: Consider a coupon bond that has a par value of $800 and a coupon rate of 5%. The bond is currently…
A: We have Face value of coupon bond =$800 coupon rate =5% Bond price P=792.61 Years to maturity =2…
Q: 20. International trade and domestic trade differ because of: Different government policies b. Trade…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: The cash flow shown in Figure 1 is in $1000 units. With an interest rate of 10%, determine the…
A: Given interest rate = 10 % Time = 10 years Constant increase in cashfllow = 100 $ Therefore present…
Q: P=21 - 0.7 Q price per kilo and Q is the kilos of coffee demanded and her total costs are given by…
A: A firm produces at the output level where MC equals MR in order to maximize profit.
Q: Describe the three bases of authority identified by Weber. Is it possible for each of these types of…
A: Max Weber, a well-known sociologist, presented a three-type theory of authority: conventional,…
Q: 42. Find the equivalent rate of interest of 9% compounded quarterly to an interest rate compounded…
A: Given interest rate = 9 % compounded quarterly Quarterly rate = 9 % / 4 = 2.25 % Annual effective…
Q: EXERCISE 443.1 (Delayed modified grim trigger strategies)) Choose a positive in- teger k and…
A: Grim Trigger Game is defined as a game where the strategies are such that a player cooperates in the…
Q: 3. Knowing that the demand for wheat is inelastic, if all famers voluntarily did not plant wheat on…
A: Dear Student, as you have posted multiple questions in a single picture, but according to the…
Q: Given the data for two alternatives, choose the better alternative using the B/C ratio analysis.…
A: Alternative X First cost (Investment) = $100,000 Net annual benefits = Benefits - Operating…
Q: What goods and services—and how much of each—will be produced?
A: In a nutshell, an economy must distribute its resources and pick between several possible bundles of…
Q: n prospect theory, loss aversion and the assumption that people aggregate the sunk and current cost…
A: According to the prospect hypothesis, investors evaluate gains and losses differently, favouring…
Q: Steel drums manufacturer incurs a yearly operating cost of P 200,000. Each drum manufactured cost P…
A: Break Even point in quantity means how much quantity should be produced in order to cover all total…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- suppose that demand in the market for good x is given by the equation Q^d=30 minus P and that supply in the market for good X is given by the equation Q^s=2P. If the government set a price ceiling at $12, would there be a shortage or surplus, and how large would be the shortage/surplus?In a competitive market, the market demand is Qd = 60 - 6P and the market supply is Qs = 4P. The full economic price under a price ceiling of $3 is? The answer is "8", but how do you get there?Consider a market that is initially in equilibrium and the equilibrium price and quantity are P and Q respectively. Then, the government decides to impose a price ceiling at a price of Pc that is less than P. Which of the following statements is correct? 1. After the price ceiling is imposed, the quantity demanded is less than the quantity supplied on the market. 2. After the price ceiling is imposed, the quantity actually sold in the market is lower than it was before the price ceiling was imposed. 3. Producer surplus in the market increased after the price ceiling was imposed. 4. Since Pc is less than P, the price ceiling is effective and therefore, there is no deadweight loss in the market.
- How can a price ceiling make consumers better off? Under what conditions might it make them worse off?What will a price ceiling always create? Shortage surplus a clear marketQuestion 16 Refer the to graph below to answer Questions 16-18 In the graph above, if the minimum price is set at P1, what area(s) represent the producer surplus after the implementation of this policy? Question 16 options: a) Areas B+C+E+F b) Areas B+E c) Areas E+F d) Area E e) Area B Question 17 In the graph above, if the minimum price is set at P1, what will limit the quantity of the good that is sold? Question 17 options: a) Demand b) Supply c) A government quota d) Consumer surplus e) Producer surplus Question 18 In the graph above, if the minimum price is set at P1, what area(s)…
- A low-income country decides to set a price ceiling on bread so it can make sure that bread is affordable to the poor. The conditions of demand and supply are given in Exhibit 10. What are the equilibrium price and equilibrium quantity before the price ceiling? What will the excess demand or the shortage if the price ceiling is set at $2.40? At $2.00? At $3.60? Price Qd Qs $1.60 9,000 5,000 $2.00 8,500 5,500 $2.40 8,000 6,400 $2.80 7,500 7,500 $3.20 7,000 9,000 $3.60 6,500 11,000 $4.00 6,000 15,000 Exhibit 10. Demand and Supply of Bread in Low-Income CountryIf a price floor is set by the government below the market equilibrium price, then Group of answer choices A: the market equilibium price will prevail. B: the quantity supplied in the market is greater than the quantity demanded, thereby creating a price ceiling. C: the quantity demanded in the market is greater than the quantity supplied, thereby creating a surplus. D: the quantity supplied in the market is greater than the quantity demanded, thereby creating a shortage.Steve decides not to rent out his second home since he is not allowed to set the rate above $1000 per month even though he knows he could find renters willing to pay much more. Would this be an example of a price ceiling or a black market?
