EBK MACROECONOMICS
7th Edition
ISBN: 9780134738970
Author: O'Brien
Publisher: PEARSON CUSTOM PUB.(CONSIGNMENT)
expand_more
expand_more
format_list_bulleted
Question
Chapter 4, Problem 4.3.5PA
Sub part (a):
To determine
The quantity of apples and benefits of
Sub part (b):
To determine
The quantity of surplus apples due to price floor.
Sub part (c):
To determine
The benefit due to price floor.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these 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 a
Suppose that the government imposed a price ceiling on cows. Would you expect theprice of steak to increase, decrease, or stay the same? Explain your answer.
The graph below depicts the market for blueberries in the country of Roni.
Price
2.4
2.0
1.6
1.2
0.8
0.4
0
100
***
200 300 400 500 600
FILI
Ish...
fald of bilan)
D
a) Suppose that in an attempt to boost the price of blueberries for its farmers, the government of Roni introduces a quota that limits the
total amount that farmers can sell to 200.000 kilos. What is the maximum price at which this quantity could be sold? Round your
answer to 1 decimal place.
$
b) What would be the farmers' total revenue as a result of the quota?
$
c) What if this government decides, instead of using a quota, to introduce a price floor of $1 per kilo? What would be the
surplus/shortage and the resulting total revenue of farmers?
(Click to select) of and total revenue: S
Chapter 4 Solutions
EBK MACROECONOMICS
Ch. 4.A - Prob. 1RQCh. 4.A - Prob. 2RQCh. 4.A - Prob. 3RQCh. 4.A - Why would economists use the term deadweight loss...Ch. 4.A - Prob. 5PACh. 4.A - Prob. 6PACh. 4.A - Prob. 7PACh. 4.A - Prob. 8PACh. 4.A - Prob. 9PACh. 4 - Prob. 1TC
Ch. 4 - Prob. 2TCCh. 4 - Prob. 4.1.1RQCh. 4 - Prob. 4.1.2RQCh. 4 - Prob. 4.1.3RQCh. 4 - Prob. 4.1.4RQCh. 4 - Prob. 4.1.5PACh. 4 - Prob. 4.1.6PACh. 4 - Prob. 4.1.7PACh. 4 - Prob. 4.1.8PACh. 4 - Prob. 4.1.9PACh. 4 - Prob. 4.1.10PACh. 4 - Prob. 4.1.11PACh. 4 - Prob. 4.1.12PACh. 4 - Prob. 4.1.13PACh. 4 - Prob. 4.1.14PACh. 4 - Prob. 4.2.1RQCh. 4 - What is economic efficiency? Why do economists...Ch. 4 - Prob. 4.2.3PACh. 4 - Prob. 4.2.4PACh. 4 - Prob. 4.2.5PACh. 4 - Prob. 4.2.6PACh. 4 - Prob. 4.2.7PACh. 4 - Prob. 4.2.8PACh. 4 - Prob. 4.2.9PACh. 4 - Prob. 4.2.10PACh. 4 - Prob. 4.3.1RQCh. 4 - Prob. 4.3.2RQCh. 4 - Prob. 4.3.3RQCh. 4 - Prob. 4.3.4RQCh. 4 - Prob. 4.3.5PACh. 4 - Prob. 4.3.6PACh. 4 - Prob. 4.3.7PACh. 4 - Prob. 4.3.8PACh. 4 - Prob. 4.3.9PACh. 4 - Prob. 4.3.10PACh. 4 - Prob. 4.3.11PACh. 4 - Prob. 4.3.12PACh. 4 - Prob. 4.3.13PACh. 4 - Prob. 4.3.14PACh. 4 - Prob. 4.3.15PACh. 4 - Prob. 4.3.16PACh. 4 - Prob. 4.3.17PACh. 4 - Prob. 4.3.18PACh. 4 - Prob. 4.3.19PACh. 4 - Prob. 4.4.1RQCh. 4 - Prob. 4.4.2RQCh. 4 - Prob. 4.4.3RQCh. 4 - Prob. 4.4.4RQCh. 4 - Prob. 4.4.5PACh. 4 - Prob. 4.4.6PACh. 4 - Prob. 4.4.7PACh. 4 - Prob. 4.4.8PACh. 4 - Prob. 4.4.9PACh. 4 - Prob. 4.4.10PACh. 4 - Prob. 4.2CTE
Knowledge Booster
Similar questions
- If the government imposes a price ceiling at $14, and the equilibrium price is at $10 in this market, the result would be a. A shortage b. A surplus c. A new equilibrium price d. Neither a surplus or a shortagearrow_forwardThe following graph shows market for printers at equilibrium at price of $100 and quantity of 100. A. Determine the effects of a $90 price ceiling on quantity demanded, quantity supplied, and quantity exchanged in the market. B. As a result of this price ceiling there will be how much shortage or Surplus in this market? C. Show the effects of the price ceiling on the graph. You can draw the graph on paper and upload an image as a PNG, JPEG or PDF document. Please keep in mind that I can not open the files with HEIC extension. D. Show the deadweight loss of the price ceiling on your graph. P 130 120 110 100 S 90 80 70 60 50 40 50 60 70 80 90 100 110 120 Q Darrow_forwardConsider the market for wireless headphones using the graph below. Price 50 Supply 40 30 20 10 Demand 100 200 300 400 500 Quantity 1. Wh is the equilibrium price and quantity in this market? 2. Calculate the producer and consumer surplus in this market. 3. If consumer income increased and this is a normal good, what will happen to the equilibrium price and quantity? (explain generally not specific numbers).arrow_forward
- Consider the market for paper towels where the supply curve is upward sloping and the demand curve is downward sloping. a. Suppose there is an effective price ceiling applied on this market. What happens to the consumer surplus as a result? b. Suppose there is an effective price floor applied on this market. What happens to the consumer surplus as a result?arrow_forwarda. Suppose the price of sugar decreases. Then, will there be a shortage or surplus in the tea leaf market? Explain with a diagram. b. Suppose there is an increase in the wage of tea farmers. Then, will there be a shortage or surplus in the tea market? Explain with a diagram. c. How will the market clearing price and the equilibrium quantity be affected by these changes? Explain in detail with diagram.arrow_forwardSuppose that a new scientifie study is published that demonstrates that eating apples slows aging. How will this affect the equilibrium price and quantity in the market? a. The equilibrium price will increase and the equilibrium quantity will decrease. b. The equilibrium price will decrease and the equilibrium quantity will increase. c. Both the equilibrium quantity and price will increase. d. Both the equilibrium quantity and price will decrease.arrow_forward
- Draw a correctly labelled demand and supply graph for the market for toilet paper in the US with an equilibrium price of $20 per pack. During the pandemic, more people were buying toilet paper in fear that it would run out. On a the same graph, show how this affects the market for toilet paper. Explain your answer. Now impose a price ceiling at $15 per pack. What would be the impact of the price ceiling on the quantity demanded and quantity supplied? Illustrate this on the graph and explain. Will the price ceiling create a shortage or excess supply? Explain. Who would benefit from the price ceiling and who would be harmed? Explain your answer. Let the graph guide your thinking. Don’t start with your gut reaction! Let's suppose the government now impose a price floor of $15 for a pack of toilet paper. Draw the market for toilet paper with the new price floor of $15 and illustrate the impact on quantity demanded and quantity supplied Give an example of a price floor and who would…arrow_forwardUSD.13 An increase in a price ceiling will change the amount of a good sold in a market: Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a if the price ceiling is effective. b regardless of whether or not the ceiling is effective. c if the price ceiling is ineffective. d if demand is inelastic.arrow_forward. Which statement best explains how a price ceiling affects the market for gasoline? It can cause more gasoline producers to enter the market. It can lead to producers increasing their production costs for gasoline. It can cause shortages in the supply of gasoline. It can lead to a decrease in the demand from consumers for gasoline.arrow_forward
- Use the table below to answer the questions: Price Quantity Supplied Quantity Demanded $5 25 150 $10 50 100 $15 75 75 $20 100 50 $25 115 25 $30 130 10 Find the equilibrium price and quantity. Assume a $20 price floor is imposed in this market. Find the quantity demanded. Find the quantity supplied. Will this be a surplus or shortage? How big will the surplus or shortage be? How many units will be sold in the market? Will this price floor increase, decrease, or have no effect on consumer surplus? Will this price floor increase, decrease, or have no effect on total surplus? Will this price floor increase, decrease, or have no effect on deadweight loss?arrow_forward2. Consider a market for portable water pump with demand equal to p = 2340-4.5Q and supply equal to p = 10 + 6.7Q. This pump is an essential equipment for farmers to provide water to their vegetable farms, and many farmer could not afford buy the pumps. The government decides to offer a subsidy to purchase the pumps to help the farmers. The subsidy is $150 and is paid to the sellers. A. Find the market equilibrium price and quantity. B. Determine the subsidized price to the farmers and the price received by the sellers. C. Find the total subsidy expenditure and the excess burden of the subsidy. D. Do you think this subsidy achieve the objective? Suggest a method to improve the provision of the subsidy.arrow_forward2. Consider a market for portable water pump with demand equal to p = 2340 - 4.5Q and supply equal to p = 10+ 6.7Q. This pump is an essential equipment for farmers to provide water to their vegetable farms, and many farmer could not afford buy the pumps. The government decides to offer a subsidy to purchase the pumps to help the farmers. The subsidy is $150 and is paid to the sellers. A. Find the market equilibrium price and quantity. B. Determine the subsidized price to the farmers and the price received by the sellers. C. Do you think this subsidy achieve the objective? Suggest a method to improve the provision of the subsidy.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506893Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Macroeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506756Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Macroeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning