Bundle: Macroeconomics, Loose-leaf Version, 13th + MindTap Economics, 1 term (6 months) Printed Access Card
13th Edition
ISBN: 9781337742412
Author: Roger A. Arnold
Publisher: Cengage Learning
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Chapter 4, Problem 1WNG
To determine
The
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The table below sets out the demand and supply schedules for college meals.
Price
(dollars per
meal)
4
5
6
7
8
Quantity
demanded
(meals per week)
3,000
2,750
2,500
2,250
Quantity
supplied
2,000
1,500
2,000
2,500
3,000
3,500
If the college put a price ceiling on meals at $7 a meal, what is the price students pay
for a meal? How many meals do they buy?
The price of a meal is $6 per meal and students buy 2,500 meals per week.
The price of a meal is $5 per meal and students buy 2,750 meals per week.
The price of a meal is $8 per meal and students buy 2,000 meals per week.
The price of a meal is $7 per meal and students buy 2,250 meals per week.
Use the following supply and demand schedules for skate boards in table 18.1, to answer the questionsbelow.
Table 18.1
Price ($)
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?
The Ministry of Misallocation has decreed that the production of widgets must be 7000 each month and the production of
gizmos must be 4000 each month. Calculate the deadweight loss in each market caused by these restrictions. Please note
the scale of the quantity axis is in thousands.
Price of widgets
$10
9
8
7
6
5
4
3
2
1
Price of gizmos
$100
90
Supply
Supply
80
70
60
50
40
30
Demand
Demand
20
10
0
012345678910
Quantity of widgets (in thousands)
What is the deadweight loss in the widgets market?
What is the deadweight loss in the gizmos market?
2 4 6 8 10 12 14 16 18 20
Quantity of gizmos (in thousands)
Chapter 4 Solutions
Bundle: Macroeconomics, Loose-leaf Version, 13th + MindTap Economics, 1 term (6 months) Printed Access Card
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