ESS OF ECON AC 11E
11th Edition
ISBN: 9781264092864
Author: SCHILLER
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Question
Chapter 3, Problem 3P
To determine
(a)
The market shortage at the Church-set price of $0.
To determine
(b)
The change in quantity demanded when the Church sold the ticket for $100.
To determine
(c)
The market shortage for tickets when Church has sold the ticket for $100.
To determine
(d)
The existence of a market shortage when the Church had sold the ticket at the equilibrium price.
Expert Solution & Answer
![Check Mark](/static/check-mark.png)
Want to see the full answer?
Check out a sample textbook solution![Blurred answer](/static/blurred-answer.jpg)
Students have asked these similar questions
Suppose that the U.S. government places a ceiling on the price of a medical drug of $7.
1.) Using the point drawing
tool,
plot the quantity supplied on the supply line and label it.
2.) Using the point drawing
tool,
plot the quantity demanded on the demand line and label it.
3.) Using the double arrow
line,
indicate, via a label, the shortage or surplus.
Carefully follow the instructions above, and only draw the required objects.
The following relations describe the supply and demand for posters.
QD = 65,000 - 10,000P and QS = -35,000 + 15,000P where Q is the quantity and P is the price of a poster, in dollars.
a. Complete the following table.
Price Qs Qd surplus or shortage
$6.00
5.00
4.00
3.00
2.00
1.00
b. What is the equilibrium price?
Q. Show and describe what would happen to the demand or quantity demanded or
quantity supplied or supply for a good in each of the following cases:
a) a. an increase in the price of a substitute of your product, an increase in the
number of suppliers and an increase in subsidies
I
b) b. an increase in the price of a complement, an increase in input prices and
increasing costs of regulation.
c) c. an increase in income, for a normal good, Freezing weather wipes out wheat
crops in California
Knowledge Booster
Similar questions
- a. If a producer tries to sell oranges at a price of $0.50 per pound, what will be the quantity demanded and quantity supplied at this price? b. Determine whether there is a surplus or a shortage at a price of $0.50 per pound, and determine the size of the surplus or shortage. At this price, there will be aarrow_forwardPrice ($ per ton) 280 300 320 340 360 380 Quantity Supplied (million tons) 8.5 9.0 9.5 10.0 10.5 11.0 Quantity Demanded (million tons) 12.5 11.0 9.5 8.0 6.5 5.0arrow_forwardIf the price is above the equilibrium level, would you predict a surplus or a shortage? If the price is below the equilibrium level, would you predict a surplus or a shortage? Why?arrow_forward
- Q# 2 Supply $1.60 1.00 .50 Demand 130 200 290 Quantity With reference to the above diagram when shortage and surplus could occur? What is the equilibrium point? Max demand is at what point? Pricearrow_forwardFind the equilibrium price and quantity for a product that has the following supply and demand curves, where p is the price in 100's of dollars and q is quantities in 1,000's of units demand: 1/3q + 1/3p - 4=0 Supply: q-p-2=0 If the product is currently priced at $400, what is the quantity supplied and the quantity demanded? Is there a surplus (More supplied than demanded) or a shortage (More demanded than supplied)arrow_forwardRefer to the following supply and demand schedules for the market for yo-yos. Price Qd Qs $1 100 10 $2 80 35 $3 60 60 $4 40 85 $5 20 110 If the price in the market is $5, will there be a surplus or shortage of yo-yos and how large will the surplus/shortage be? Show your work. If price is $5, will it tend to increase, decrease, or stay the same over time?arrow_forward
- If the price of a product was $600, but the supply and demand curves remained unchanged, answer the Price following: 700 600 500 400 300 200 100 What is the quantity demanded at this price? What is the quantity supplied at this price? Are we in equilibrium, shortage or surplus? What will happen to price? What will happen to quantity supplied? What will happen to quantity demanded? 100 150 200 250 300 350 400 450 500 Choose... Choose... Choose... Choose... Choose.... S Choose... D Quantityarrow_forwardDraw supply and demand diagrams for market A for each of the following. Then use your diagrams to illustrate the impact of the following events. In each case, determine what happens to price and quantity in each market. a. A and B are substitutes, and the price of good B rises. b. A and B satisfy the same kinds of desires, and there is a shift in tastes away from A and toward B. c. A is a normal good, and incomes in the community increase. d. There is a technological advance in the production of good A. e. B is an input used to produce good A, and the price of B rises.arrow_forwardThe following graph shows the monthly demand and supply curves in the market for shirts. (a). The equilibrium price in this market is $_________ per shirt and the equilibrium quantity is _________ shirts bought and sold per month. (b). Complete the following table by indicating at each price whether there is a shortage or surplus in the market, the amount of that shortage or surplus, and whether this places upward or downward pressure on prices. Price (Dollars per shirt) Shortage or Surplus Shortage or Surplus Amount (Shirts) Pressure on Price: Downward or upward? 48 32arrow_forward
- Use the graph below to answer the following questions: Price $15 Supply $14 $13 $12 $11 $10 Demand 25 75 125 175 225 275 Quantityarrow_forwardRefer to the following expanded table . a. What is the equilibrium price? At what price is there neither a shortage nor a surplus? Fill in the surplus-shortage column and use it to confirm your answers. b. Graph the demand for wheat and the supply of wheat. Be sure to label the axes of your graph correctly. Label equilibrium price P and equilibrium quantity Q. c. How big is the surplus or shortage at $3.40? At $4.90? How big a surplus or shortage results if the price is 60 cents higher than the equilibrium price? 30 cents lower than the equilibrium price?arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
- Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337617390/9781337617390_smallCoverImage.gif)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337617406/9781337617406_smallCoverImage.gif)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337617383/9781337617383_smallCoverImage.gif)
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337111522/9781337111522_smallCoverImage.gif)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337613040/9781337613040_smallCoverImage.gif)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337613064/9781337613064_smallCoverImage.gif)