ECON MICRO
5th Edition
ISBN: 9781337000536
Author: William A. McEachern
Publisher: Cengage Learning
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Chapter 4, Problem 4.7P
To determine
Effect on the quantity demanded, quantity supplies, and price of the oil.
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There are many Milk producers in Cuba. Due to oversupply of Milk, the price of Milk is going down in the market. As an economist you will request Cuban government to fix ______________.
a.
Price ceiling and import of Milk
b.
Price floor and import of Milk
c.
Price floor and export of Milk
d.
Price ceiling and export of Milk
A semiconductor is a key component in your laptop, cell phone, and iPod. The table provides information about the market for semiconductors in the United States. Producers of semiconductors can get $18 a unit on the world market.
Price (dollars per unit)
Quantity demanded Quantity(billions of units per year)
Quantity supplied(billions of units per year)
10
25
0
12
20
20
14
15
40
16
10
60
18
5
80
20
0
100
Draw a graph (graph is for your own reference, not required to be attached in the answer sheet) to illustrate the U.S. supply and demand market for semiconductors. What is the price with free international trade? What is the quantity of semiconductors produced in U.S. and total quantity bought by U.S. people and the quantity exported from other countries? (3 marks)
Due to loss of competitiveness brought on by appreciation of the exchange rate and the high production costs, U.S. government reduce the export (or limit the…
D7)
Economics
How do price ceilings in the rental housing market affect tenants?
A. Since price ceilings keep rents from rising above a certain level, the net gain to tenants is positive.
B. Tenants are worse off from price ceilings since the supply of rental housing falls in the long run.
C.Tenants benefit from price ceilings since landlords have incentives to improve the quality of existing rental housing
D. Since the supply of rental housing is inelastic in the short run, tenants are not affected by a price ceiling.
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