STUDY GUIDE F/MICROECONOMICS
21st Edition
ISBN: 9781307066920
Author: McConnell
Publisher: MCG/CREATE
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Chapter 22, Problem 3RQ
To determine
Reducing the surplus corn.
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09. Given a price ceiling set at $8, what would be the quantity traded in this market?
a) 4
b) 5
c) 7
d) 8
e) 9
f) 12
g) 13
h) 16
i) 17
10. Given a price floor set at $16, what would be the quantity traded in this market?
a) 4
b) 5
c) 7
d) 8
e) 9
f) 12
g) 13
h) 16
i) 17
12. Which of the following statements are true?
a) Economists call the farm price support system "welfare for the rich"
b) There is a fixed amount of jobs in the economy.
c) Price ceilings and price floors cause economic inefficiency and corruption.
d) General price controls is considered by economsts among the most stupid policies.
e) Only Democrats support price control policies.
1. Please calculate the consumer surplus, producer surplus, and total surplus at the competitive market equilibrium.
Suppose the government sets a $24 maximum price (price ceiling) for this market.
2. With this price ceiling,
What is the price legally received by producers?
How much is the quantity produced?
Please calculate the producer surplus. I expected numerical values.
3. With this price ceiling,
What is the effective price paid by consumers?
How much is the quantity consumed?
Please calculate the consumer surplus. I expected numerical values.
4. With this price ceiling, please calculate the value of the deadweight loss.
5. Please summarize who benefits or loses from this policy.
Suppose the government implemented a price floor at $7 per cup of coffee.
Identify the new quantities demanded and supplied and any surplus or shortage of coffee. What will the new quantity be in the coffee market?
What is the total surplus with the price floor? How much deadweight loss was created, if any?
3. What is consumer and producer surplus? Did either the consumer or producer surplus change? In what direction? Discuss in your group why consumer and producer surplus did or did not change.
Chapter 22 Solutions
STUDY GUIDE F/MICROECONOMICS
Ch. 22 - Prob. 1DQCh. 22 - Prob. 2DQCh. 22 - Prob. 3DQCh. 22 - Prob. 4DQCh. 22 - Prob. 5DQCh. 22 - Prob. 6DQCh. 22 - Prob. 7DQCh. 22 - Prob. 8DQCh. 22 - Prob. 9DQCh. 22 - Prob. 10DQ
Ch. 22 - Prob. 11DQCh. 22 - Prob. 12DQCh. 22 - Prob. 13DQCh. 22 - Prob. 14DQCh. 22 - Prob. 1RQCh. 22 - Prob. 2RQCh. 22 - Prob. 3RQCh. 22 - Prob. 4RQCh. 22 - Prob. 5RQCh. 22 - Suppose that corn currently costs 4 per bushel and...Ch. 22 - Suppose chat both wheat and corn have an income...Ch. 22 - Prob. 3PCh. 22 - Prob. 4P
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