The table below shows the demand and supply schedules for bleach. PRICE (per litre) QUANTITY DEMANDED (litres per week) $ 24 5 21 18 15 12 QUANTITY SUPPLIED (litres per week) 60 50 40 30 20 10 10 20 30 40 9 50 6 60 A. Draw the demand and supply curves on the graph paper provided. B. Indicate the equilibrium price and quantity. C. Suppose the government decides that the price of bleach is too high and imposes a price ceiling of $12, what would be the impact of such a ceiling? 529 5 "1

The table below shows the demand and supply schedules for bleach. PRICE (per litre) QUANTITY DEMANDED (litres per week) $ 24 5 21 18 15 12 QUANTITY SUPPLIED (litres per week) 60 50 40 30 20 10 10 20 30 40 9 50 6 60 A. Draw the demand and supply curves on the graph paper provided. B. Indicate the equilibrium price and quantity. C. Suppose the government decides that the price of bleach is too high and imposes a price ceiling of $12, what would be the impact of such a ceiling? 529 5 "1

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter6: Supply, Demand And Government Policies

Section: Chapter Questions

Problem 3PA

See similar textbooks

Similar questions

What happens to the price and the quantity bought and sold in the cocoa market if counties producing cocoa experience a drought and a new study is released demonstrating the health benefits of cocoa? Illustrate your answer with a demand and supply graph.
Suppose the following information is available for the Apples market in turkey for breakfast. Given the data answer the following questions:Price per KG Quantity Demanded Quantity Supplied 20 600 200 30 500 300 40 400 400 50 300 500 60 200 600a. Determine the market equilibrium price and quantity for Apples.b. Suppose, there is an improvement in Technology of genetical Modifying apple seeds. Reflect its impact on the analysis in part "a".c. Suppose, the price is fixed at Rs. 30 per KG, using your answer in part "a" reflect the impact it is going to…
Question 6 At the price of $5 per pack of batteries, Duracell sells 10,000 packs of batteries and Energizer sells 15,000 packs of batteries. When the price rises to $7.50, Duracell sells 12,000 packs of batteries and Energizer sells 16,000 packs of batteries. What is the market supply at a price of $7.50? 12,000 16,000 4,000 28,000 25,000 Question 7 Social welfare (i.e. the sum of producer and consumer surplus) is maximized when the government taxes most goods and services. very few consumers and producers exist within a market the market reaches its equilibrium price and quantity. supply and demand are perfectly inelastic. the government imposes price controls. Question 8 When demand is perfectly elastic, the demand curve is vertical. upward-sloping. U-shaped.…
Suppose that the market for milk can be represented by the following equations: Demand: P = 12 – 0.5QD Supply: P = 0.1QS where P is the price per gallon, and Q represents quantity of milk, represented in millions of gallons of milk consumed per day. a) Calculate the equilibrium price and quantity of milk. b) To help dairy farmers, the government sets a minimum price of K2.50 per gallon of milk. What is the new quantity of milk sold in the marketplace?
Suppose that the market for bottled water can be represented by the following equations: Demand: P = 10 - 2QDSupply: P = 1 + 0.5QSwhere P is the price per gallon, and Q represents quantity of purified water, represented inmillions of gallons of water consumed.a) Calculate the equilibrium price and quantity of bottled water.b) Concerned over high water prices after the winter storm, the government sets a priceceiling of $2.25 per gallon of water. What is the new quantity of water sold in themarket? Use supply and demand curves to illustrate your answer, showing both theoriginal equilibrium from part a) and the new quantity sold with the price ceiling.c) Calculate the producer surplus and consumer surplus at the initial equilibrium priceand quantity from part a).d) Calculate the new producer surplus and consumer surplus with the price ceiling frompart b).e) How does the total consumer and producer surplus in part c) compare to the totalconsumer and producer surplus in part d)? What…
Based on Table 1, in order to help the consumer, the government imposes a price control of RM0.60 per liter: Give the name of this price control and how much petrol will be demanded by consumer at this price?. How much petrol will be offered for sale by suppliers, and how much petrol will actually be sold? Calculate the excess quantity of petrol demanded. Price (RM) Quantity demanded (liter per day) Quantity supplied (liter per day) 0.80 8 24 0.75 10 22 0.70 12 20 0.65 14 18 0.60 16 16 0.55 18 14
A government of a country X would like to administer two programs that affect the market for cigarettes. Media campaigns and labeling requirements are aimed at making the public aware of the dangers of cigarette smoking. At the same time, the Department of Agriculture maintains a price support program for tobacco farmers, which raises the price of tobacco above the equilibrium price. 1- How do these two programs affect cigarette consumption? 2- Use a graph of the cigarette market in your answer. 3- What is the combined effect of these two programs on the price of cigarettes? 4- Cigarettes are also heavily taxed. What effect does this tax have on cigarette consumption?
please plot a graph showing the effect of a government subsidy on the market for surgical masks.
A recent hot issue in Ghana is energy. Suppose the demand for energy is described by Q=50-0.5P and the supply of energy by Q=P-10.(a) Graph the supply and demand curves carefully. Determine the equilibrium price and quantity of energy.(b) Some lawmakers decide that the problem with Ghana is that the price of energy is too high. They propose a bill that would set a price limit of $30 per unit of energy. If enacted, what will be the effect of this law on the quantity of energy supplied and demanded? Is the market on equilibrium? Explain. If not, calculate the shortage/surplus that results.(c) Other lawmakers decide that energy prices are too low and are considering a tax on energy to encourage conservation. What will be the effect on equilibrium price and quantity of a $20 per unit tax on energy, if the tax is collected from suppliers? Show this on the original supply and demand diagram as well.(d) Using the results from part (c) calculate the economic price incidence for suppliers and…
If the equilibrium price is $10 and equilibrium quantity 10 units, and a price ceiling of $8 is imposed, we can expect
Listen to thisLinks to an external site. podcast about the market for human organs. https://www.npr.org/2008/05/21/90632108/should-we-legalize-the-market-for-human-organs Initial Response: Is there currently a surplus or shortage of human organs available for transplant? Using the demand/supply framework, explain how legalizing the trade for human organs will help move the market towards an equilibrium. Reply: Add to your original response by answering this question. What other product/market do you think should be legalized (or one that is currently legal and should not be) and why?
I) The demand for petroleum is given by QD=85 − 0.4? where Q Dis the quantity demanded in thousands of barrels per day and P is the price per barrel in dollars. The supply of petroleum is given by QS=55+0.6?. Calculate the equilibrium price and quantity in this market. II) In the context of the problem in part (i), calculate the demand and supply for petroleum if the market price is $15 per barrel. What problem exists in the economy?