EBK PRINCIPLES OF MICROECONOMICS
7th Edition
ISBN: 8220101472380
Author: Mankiw
Publisher: CENGAGE L
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Chapter 6, Problem 4CQQ
To determine
The reason for the increase in the quantity supplied, decrease in quantity demanded, and increase in the consumer price .
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If a municipality sets a price ceiling below equilibrium for apartments in New York City,
Select one:
a. the price ceiling will create a surplus of apartments
b. the price ceiling will create a shortage of apartments
c. the price ceiling will not affect the market for apartments
d. the market for more broadway plays will increase
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Which change would cause a decrease in price and a decrease in the quantity sold? Pick a,b,c, or d
a. The granting of a subsidy to producers of the product
b. The removal of a price floor on the product maintained by government legislation and rationing
c. The granting of a subsidy to consumers of the product
d. The removal of a price ceiling on the product maintained by government legislation and purchases of surpluses
Which of the following would Increase quantitysupplied, mcrease quantity demanded, and decreasethe price that consumers pay?a. the imposition of a bmding price floorb. the removal of a binding price floorc. the passage of a tax levied on producersd. the repeal of a tax levied on producers
Chapter 6 Solutions
EBK PRINCIPLES OF MICROECONOMICS
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- QUESTION 4 Use the following supply and demand schedules for skate boards in table 18.1, to answer the questions 18(a). to 18(d) below. Table 18.1 Price ($) 300 Quantity Demanded Quantity Supplied 60 30 400 55 40 500 50 50 600 45 60 700 40 70 800 35 80 a. In response, to lobbying by the skate board association, the government places a price ceiling at the price of $700 on skate boards. What will this have on the market for skate boards? Explain your answer. b. In response, to lobbying by the skate board association, the government places a price ceiling of $400 on skate boards. Use the information provided in Table 18.1, to plot the supply and demand curve for skate boards. c. Use the information provided in Table 18.1, to plot the price ceiling of $400 on skateboards. d. What will be the result of a price ceiling of $400 on skate boards?arrow_forwardIf the government removes a tax on a good, then the quantity of the good sold will______.arrow_forwardA recent study found that the demand and supply schedules for Anti-virus software are as follows: Price per Anti-virus Software Quantity Demand Quantity Supply 11$ 1 million Anti-virus software 15 million Anti-virus software 10 2 12 9 4 9 8 6 6 7 8 3 6 10 1 Questions: Anti-virus software manufacturers persuade the government to impose a price floor $10. What is the new market price? How many Anti-virus software are sold? What situation it will causes? Explain with a graph.arrow_forward
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