EBK FOUNDATIONS OF ECONOMICS
8th Edition
ISBN: 8220103632225
Author: PARKIN
Publisher: PEARSON
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Question
Chapter 7, Problem 7MCQ
To determine
To state:
The option that correctly states the effect of the production quota set below the market
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Students have asked these similar questions
Consider the market for bus travel, where equilibrium price and quantity is determined by demand and supply. If bus travel is an inferior good and there is an increase in income and at the same time, the government subsidises bus travel, which of the following will occur?
(a) The equilibrium price and quantity will be lower.
(b) The equilibrium quantity will be higher, but the impact on price will be unknown.
(c) The equilibrium price will be lower, but the equilibrium quantity will be higher.
(d) The equilibrium price will be lower, but the impact on quantity will be unknown.
Which area represents the producer surplus?
Q20
In Canada we have government intervention in the dairy market in the form of quotas on milk production. What are two predicted economic effects of this policy?
a.
A redistribution of income from dairy farmers to consumers of dairy products and an increase in the total amount of economic surplus in the dairy market.
b.
An equitable distribution of income between dairy farmers and consumers of dairy products and a reduction in the total amount of economic surplus in the dairy market.
c.
A redistribution of income from consumers of dairy products to dairy farmers and a reduction in deadweight loss in the dairy market.
d.
A redistribution of income from dairy farmers to consumers of dairy products and a reduction in the total amount of economic surplus in the dairy market.
e.
A redistribution of income from consumers of dairy products to dairy farmers and a reduction in the total amount of economic surplus in the dairy market.
Clear my choice
Chapter 7 Solutions
EBK FOUNDATIONS OF ECONOMICS
Ch. 7 - Prob. 1SPPACh. 7 - Prob. 2SPPACh. 7 - Prob. 3SPPACh. 7 - Prob. 4SPPACh. 7 - Prob. 5SPPACh. 7 - Prob. 6SPPACh. 7 - Prob. 7SPPACh. 7 - Prob. 8SPPACh. 7 - Prob. 9SPPACh. 7 - Prob. 10SPPA
Ch. 7 - Prob. 11SPPACh. 7 - Prob. 1IAPACh. 7 - Prob. 2IAPACh. 7 - Prob. 3IAPACh. 7 - Prob. 4IAPACh. 7 - Prob. 5IAPACh. 7 - Prob. 6IAPACh. 7 - Prob. 7IAPACh. 7 - Prob. 8IAPACh. 7 - Prob. 9IAPACh. 7 - Prob. 1MCQCh. 7 - Prob. 2MCQCh. 7 - Prob. 3MCQCh. 7 - Prob. 4MCQCh. 7 - Prob. 5MCQCh. 7 - Prob. 6MCQCh. 7 - Prob. 7MCQCh. 7 - Prob. 8MCQ
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