Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
expand_more
expand_more
format_list_bulleted
Question
Chapter 6, Problem 21APA
a)
To determine
Impact on market
b)
To determine
The impact on market price and quantity when penalty is imposed on sellers.
c)
To determine
The impact on market price and quantity when penalty is imposed on buyers.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
3. You are advising a friend who sells paintings on the sidewalk. What price should she put on all the paintings given the following information: Price $100 Quantity demanded 1 Price $80 Quantity demanded 2 Price $60 Quantity demanded 3 Price $40 Quantity demanded 4 And the fixed cost for her business is $50, while it costs her $40 to paint each additional painting, how many paintings should she sell if she sells each painting for the same price and what will that price be? Please show your work.
Question 3
The government in your country is considering three programs that affect the market for cigarettes
Program 1: Media campaigns and labelling requirements aimed at making the public aware of the dangers of cigarette smoking.
Program 2: A price support program for tobacco farmers.
Program 3: A cap on the number of cases of cigarettes sold per quarter at 20,000 cases.
The aim of the government is to support farmers while reducing the consumption of cigarette.
(i) What program or combination of programs should be implemented?
(ii) Why?
Plot the below demand and supply schedule. A. What is the market equilibrium? B. Describe the situation at a price of $9. Describe the situation at a price of $3. What will occur? (Show both situations on your graph). If shortage or surplus, how will the price adjust?C. Suppose the government imposed a minimum price of $10. What would occur? Illustrate (show on your graph). Is the situation that results temporary or permanent? Explain D. Indicate what the price would have to be to represent an effective price ceiling (show on your graph). Is the shortage that results temporary or permanent? Explain
Price
Quantity Demanded
Quantity Supplied
$1
1000
200
$2
800
240
$3
700
300
$4
640
400
$5
600
600
$6
550
820
$7
520
1000
$8
460
1300
$9
400
1600
$10
300
1950
Chapter 6 Solutions
Macroeconomics
Ch. 6.1 - Prob. 1RQCh. 6.1 - Prob. 2RQCh. 6.1 - Prob. 3RQCh. 6.1 - Prob. 4RQCh. 6.2 - Prob. 1RQCh. 6.2 - Prob. 2RQCh. 6.2 - Prob. 3RQCh. 6.2 - Prob. 4RQCh. 6.2 - Prob. 5RQCh. 6.3 - Prob. 1RQ
Ch. 6.3 - Prob. 2RQCh. 6.3 - Prob. 3RQCh. 6.3 - Prob. 4RQCh. 6.3 - Prob. 5RQCh. 6.4 - Prob. 1RQCh. 6.4 - Prob. 2RQCh. 6.4 - Prob. 3RQCh. 6.4 - Prob. 4RQCh. 6.4 - Prob. 5RQCh. 6.5 - Prob. 1RQCh. 6.5 - Prob. 2RQCh. 6.5 - Prob. 3RQCh. 6.5 - Prob. 4RQCh. 6 - Prob. 1SPACh. 6 - Prob. 2SPACh. 6 - Prob. 3SPACh. 6 - Prob. 4SPACh. 6 - Taxes (Study Plan 6.3) 5. The table in the next...Ch. 6 - Prob. 6SPACh. 6 - Prob. 7SPACh. 6 - Prob. 8SPACh. 6 - Prob. 9APACh. 6 - Prob. 10APACh. 6 - Prob. 11APACh. 6 - Prob. 12APACh. 6 - Prob. 13APACh. 6 - Prob. 14APACh. 6 - Prob. 15APACh. 6 - Prob. 16APACh. 6 - Prob. 17APACh. 6 - Prob. 18APACh. 6 - Prob. 19APACh. 6 - Prob. 20APACh. 6 - Prob. 21APACh. 6 - Prob. 22APACh. 6 - Prob. 23APA
Knowledge Booster
Similar questions
- Give typing answer with explanation and conclusion 5.)What happens if a government imposes price controls that require a selling price that is BELOW the equilibrium price? A. A SHORTAGE results—a shortage then puts a pressure on prices to DROP B. A SHORTAGE results—a shortage then puts a pressure on prices to RISE C. A SURPLUS results—a surplus then puts a pressure on prices to DROP D. A SURPLUS results—a surplus then puts a pressure on prices to RISEarrow_forwardQ)3. You are advising a friend who sells paintings on the sidewalk. What price should she put on all the paintings given the following information: Price $50 Quantity demanded 1 Price $40 Quantity demanded 2 Price $30 Quantity demanded 3 Price $20 Quantity demanded 4 And the fixed cost for her business is $30, while it costs her $20 to paint each additional painting, how many paintings should she sell if she sells each painting for the same price and what will that price be? Please show your work. 4. Go back to the example you used in the discussion of an example of price discrimination that you have experienced. Imagine that you are explaining to a friend who has not studied economics. Don't use the term "elasticity," but explain in words how this concept explains how the producer benefits from price discrimination.arrow_forwardQuestion 1 (a) Assume that the markets for sugar cane, rum and whiskey are initially in equilibrium (i.e., supply equals demand in each case). Assume further that a good harvest impacts the world’s sugar cane crop. Sugar cane is a principal ingredient in rum, but it is not an ingredient in whiskey. Rum and whiskey are substitutes in consumption.(ii) Discuss the effect on the markets for each of the three products if the government implements a price restriction in the sugar cane market with the aim of protecting the farmers. How will this impact the revenues for sugar growers, rum producers and whiskey producers?arrow_forward
- 1. New advances in recycling technology reduce the cost of producing paper made from recycled material. SELECT THE CORRECT ANSWER a. Which of the following will occur in the market for paper made from recycled material? -supply will decrease -supply will increase -demand will decrease -demand will increase b. Will the advancement in recycling technology result in a shortage or surplus of paper made from recycled material at the previous price? Will the price of paper made from recycled material rise or fall? -surplus, rise -shortage, rise -shortage, fall -surplus, fallarrow_forwardA key skill in economics is the ability to use the theory of supply and demand to analyze specific markets. With this assignment, you get a chance to demonstrate your ability to apply what you have learned to the coffee market. Be sure to answer all parts of each of the scenarios below. Students may utilize Paint, Word (the shapes tool under Insert), OneNote (Draw tab), or hand draw the graphs. Scenario 1: Suppose that the FDA increases regulations for coffee. Will this affect the supply or demand for coffee? Why? Which determinant of demand or supply is being affected? Show graphically with before and after curves on the same axes. How will this change affect the equilibrium price and quantity of coffee? Explain your reasoning. Scenario 2: Suppose the Mayo publishes a study finding that the caffeine in coffee increases the probability of getting Alzheimer’s. How do you imagine this will affect the market for coffee? Which determinant of demand or supply is being affected? Show…arrow_forward1. What sort of product is alcohol in economic terms if the government wants torestrict consumption of it?2. Analyze the social costs of alcohol consumption.3. Analyze the factors that would determine the impact of a price increase on theconsumption of alcohol4. Is introducing a minimum price a better way of reducing consumption than trying tochange peoples’ attitudes?arrow_forward
- (ii) Discuss the effect on the markets for sugarcane, rum and whiskey, if the government implements a price restriction in the sugar cane market with the aim of protecting the farmers. How will this impact the revenues for sugar growers, rum producers and whiskey producers?arrow_forwardTOPIC: Supply and demandIn the market for widgets, the supply and demand curve are “normal” 45° lines. The equilibrium price is £5 and the equilibrium quantity is 10 widgets. The government sets a maximum price for widgets of £2. Show the effect of this policy in a large suitably labelled graph on widget supply, widget demand, and the amount of widgets sold.arrow_forward1. What sort of product is alcohol in economic terms if the government wants to restrict consumption of it? 2. Analyze the social costs of alcohol 3. Analyze the factors that would determine the impact of a price increase on the consumption of alcohol. Is introducing a minimum price a better way of reducing consumption than trying to change peoples’ attitudes?arrow_forward
- Question 2 The demand and supply of widgets is given belowQ is quantity, and P is price of widgets Q-1000-2P Q-500+3P aHow much is equilibrium quantity and equilibrium price (show me your work) bIf there is a price control of $50 imposed by the government for widgets, how much shortage is there in the economyWhat type of price control is this called? c. Draw the Demand and Supply graphsshow equilibrium pricequantity points and on the same graph show price control pointsarrow_forwardTable 18.1 Price ($) Quantity Demanded Quantity Supplied 300 60 30 400 55 40 500 50 50 600 45 60 700 40 70 800 35 80 .In response, to lobbying by the skate board association, the government places a price floor at the price of $700 on skate boards. What will this have on the market for skate boards? Explain your answer.arrow_forwardPRICE 20 18 16 14 12 10 12 8 6 4 Demand 2 Supply... 4 68 10 12 14 16 18 20 QUANTITY Refer to Figure 6-5. A government-imposed price of $12 in this market is an example of a nonbinding price ceiling that creates a shortage. binding price floor that creates a surplus. binding price ceiling that creates a shortage. O nonbinding price floor that creates a surplus. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStax
Principles of MicroeconomicsEconomicsISBN:9781305156050Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax
Principles of Microeconomics
Economics
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:Cengage Learning