Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Question
Chapter 6, Problem 8SPA
a)
To determine
Impact on market
b)
To determine
Impact on market price and quantity bought when penalty is imposed on both seller and buyer.
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1. If the price of a good increases while the quantity of the good exchanged on markets decreases, then the most likely explanation is that there has been a decrease in ___________ 2. In order to reduce shortages, business owners will likely _________________ prices. 3. If bad weather destroys much of the wheat crop, then growers will offer ____________ wheat at each and every price. 4. The price of wheat rises due to a bad drought. As a result, the supply of bread and pasta will ____________ 5. A government subsidy to the producers of a product will _______________ supply of a product. 6. A market in which sellers illegally sell to buyers at higher than legal prices is called ________________ 7. Market ________________ refers to a situation in which market price is at a level where there is neither a shortage nor a surplus. 8. When the government taxes suppliers for the goods they sell, the ________________ curve shifts leftwards
A government of a country X would like to administer two programs that affect the market for cigarettes. Media campaigns and labeling requirements are aimed at making the public aware of the dangers of cigarette smoking. At the same time, the Department of Agriculture maintains a price support program for tobacco farmers, which raises the price of tobacco above the equilibrium price.
1- How do these two programs affect cigarette consumption?
2- Use a graph of the cigarette market in your answer.
3- What is the combined effect of these two programs on the price of cigarettes?
4- Cigarettes are also heavily taxed. What effect does this tax have on cigarette consumption?
1. When a price ceiling is imposed in a market,
a. a persistent shortage results
b. a persistent surplus results
c. sellers of the product are made better off
d. no one is made better off
e. quantity supplied is greater than the quantity demanded
2. All of the following are problems associated with price ceilings except
a. chronic excess demand
b. an eventual decline in the number of suppliers
c. the need to use ration coupons to purchase the good
d. chronic excess supply
e. landlords failing to maintain rent-controlled properties adequately
3. When a price floor is imposed, it has an impact on a market if it is set
a. below the equilibrium price
b. at the equilibrium price
c. above the equilibrium price because quantity demanded exceeds quantity supplied
d. above the equilibrium price because quantity supplied exceeds quantity demanded
e. below the equilibrium price because quantity demanded exceeds quantity supplied
4. One lesson to be drawn from our discussion of price ceilings…
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
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