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- Suppose the equilibrium price for soccer tickets in a free market results in 15,000 tickets being purchased. Major League Soccer has decided to impose a price control of $19 per ticket. At a price of $19, soccer teams would be willing to supply 11000 tickets. At this price, consumers are willing to purchase 25500 tickets. Which of the following is a result of the price control?There will be a __ of ___ ticketsWhat are the pros and cons of a price ceiling on facial masks/ personal protective equipment ?Let Q=P be the supply curve and Q=10-P be the demand curve. If there is a price ceiling of 3 then DWL=.....
- Which of the following statements about price ceilings is TRUE? (Assume the priceceiling is set below the unregulated equilibrium price.)a) Price ceilings make sellers worse off.b) Price ceilings make buyers better off.c) Both a) and b) are true.d) Neither a) nor b is true).Consider the attached graph showing the supply and demand for rental apartments around the UH. campus. If the government were to subsidize housing by $1000 per unit per month, then the quantity of rental apartments would____ (increase or decrease) by____ thousand units. The rental price received by landlords inclusive of the subsidy would ____(increase or decrease) by_____ dollars per month while the price paid by tenants, net of the subsidy, would____ (increase or decrease) by____ dollars per monthUse the following supply and demand schedules for skate boards in table 18.1, to answer the questionsbelow. Table 18.1 Price ($) Quantity Demanded Quantity Supplied 300 60 30 400 55 40 500 50 50 600 45 60 700 40 70 800 35 80 What will be the result of a price ceiling of $400 on skate boards?
- If there is any price ceiling and price floor imposition on these two products, 1. Sony Television 2. Samsung Mobile phone what would be the effect?.12) In the effort to reduce alcohol consumption, the government is considering a $1 tax on each gallon of liquor sold. The legal incidence of the tax will be on producers. Suppose the demand for alcohol is described by Q D = 500,000 – 20,000*P where Q D is quantity and P is price per gallon (NOTE: the inverse demand curve would be P = 25 – 0.00005*Q D ). The supply curve is described at Q S = 30,000*P (NOTE: This would make the MC curve MC = (1/30,000)*Q S ). a. Draw the supply and demand curves before the tax is imposed. Calculate the equilibrium price and quantity. b. Add the tax to the supply curve. Calculate the new price per gallon consumers pay, the price per gallon producers receive, and the new equilibrium quantity. c. Calculate the amount of revenue the tax generates. How much of the tax is paid by consumers? How much of the tax is paid by producers? d. Calculate the elasticity of demand at the original equilibrium price. Calculate the elasticity of supply at the original…12) In the effort to reduce alcohol consumption, the government is considering a $1 tax on each gallon of liquor sold. The legal incidence of the tax will be on producers. Suppose the demand for alcohol is described by Q D = 500,000 – 20,000*P where Q D is quantity and P is price per gallon (NOTE: the inverse demand curve would be P = 25 – 0.00005*Q D ). The supply curve is described at Q S = 30,000*P (NOTE: This would make the MC curve MC = (1/30,000)*Q S ). D. Calculate the elasticity of demand at the original equilibrium price. Calculate the elasticity of supply at the original equilibrium price. e. Calculate the deadweight loss of the tax. f. Suppose that if you were to disaggregate the market demand into young drinkers and old drinkers you would find that the demand for alcohol is more elastic among young drinkers than old drinkers. Which group of drinkers will change their behavior more? Which group of drinkers will bear the bigger burden of the proportion of the tax that…