1) Dry cleaning of clothing produces air pollutants. Therefore, in the market for dry cleaning services, the equilibrium price: A) is too low to be optimal, and equilibrium quantity is too high. B) is optimal, but there is an excess supply. C) and output are too high to be optimal. D) is too high to be optimal, and equilibrium quantity is too low. E) and output are too low to be optimal.

1) Dry cleaning of clothing produces air pollutants. Therefore, in the market for dry cleaning services, the equilibrium price: A) is too low to be optimal, and equilibrium quantity is too high. B) is optimal, but there is an excess supply. C) and output are too high to be optimal. D) is too high to be optimal, and equilibrium quantity is too low. E) and output are too low to be optimal.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter4: Markets In Action

Section: Chapter Questions

Problem 1SQ

See similar textbooks

Similar questions

here is the diagram
An increase in taste for the good with a simultaneous decrease in subsidies will cause the equilibrium price to fall and equilibrium quantity to increase. True or False
Question 1 Hurricane Katrina damaged a large portion of refining and pipeline capacity when it swept through the Gulf coast states in August 2005. As a result of this, many gasoline distributors were not able to maintain normal deliveries. At the pre-hurricane equilibrium price (i.e., at the initial equilibrium price), we would expect to see a surplus of gasoline. the quantity demanded equal to the quantity supplied. a shortage of gasoline. an increase in the demand for gasoline.
Consider two markets: the market for coffee and the market for hot cocoa. The initial equilibrium for both markets is the same, the equilibrium price is $6.50$⁢6.50, and the equilibrium quantity is 39.039.0. When the price is $9.75$9.75, the quantity supplied of coffee is 71.071.0 and the quantity supplied of hot cocoa is 105.0105.0. For simplicity of analysis, the demand for both goods is the same. Using the midpoint formula, calculate the elasticity of supply for hot cocoa. Please round to two decimal places. Supply in the market for coffee is more elastic than supply in the market for hot cocoa. There is not enough information to tell which has a higher elasticity. the same elasticity as supply in the market for hot cocoa. less elastic than supply in the market for hot cocoa.
There is a hypothetical market for bottled water. The market demand and supply are QD = 1150 – 100P and QS = -100 + 40OP. a) Find the equilibrium price and quantity.
On the market for cherries, supply is inelastic, while demand is elastic. You know that suppliers are not ready to supply any cherries when the price is below $1.5 per pound. a) On a graph, show the equilibrium price and the equilibrium quantity. Make sure you label the axes and the curves. Then, show the consumer surplus and the producer surplus. b) Strawberries and cherries are substitutes. The price of strawberries increased. On a graph,show what will happen on the market for cherries. Show the change in the consumer surplus. Show the change in the producer surplus. c) Forget about part (b). There are issues with the supply chain: transportation companies raise the fees they charge to deliver cherries from the farms to the supermarkets. On a graph, show what will happen on the market for cherries. Show the change in the consumer surplus. Show the change in the producer surplus
An increase in technology with a simultaneous decrease in the number of buyers will cause the equilibrium price to fall and equilibrium quantity to be indeterminate. True False
Q.1.10 Which of the following will result in a decrease in the equilibrium quantity of agood?(a) An increase in both demand and supply.(b) A decrease in both demand and supply.(c) An increase in demand together with a decrease in supply.(d) A decrease in demand together with an increase in supply.
Assuming an increase in Demant and decrease in Supply, which of the following statements is TRUE? The price of the good will decrease. The quantity of the good will definitely decrease. The price of this good will definitely increase. There will be a permanent shortage of this good. The new equilibrium quantity may increase, decrease, or stay the same. A surplus of this good will result from these changes in Supply and Demand. What new equiLibrium quantity will result depends on the relative magnitude of the changes and the shapes of the Demand and Supply curves. We cannot determine what will happen to price.
The task I am struggling with: Determine the supply and demand function and the equilibrium point.Graph the results.Demand. If a given product is priced at $7 per unit, there is a demand for 4 units;if a given product is priced at $6 per unit, there is a demand for 8 units.Supply. If a given product is priced at $9 per unit, suppliers are willing to produce4 units; if a given product is priced at $23 per unit, suppliers are willing toproduce 12 units. Thank you very much.
part D
The demand and supply of some good are as follows: Qd = 3,000 - 20P Qs = 1,000 + 5P (a) Calculate the equilibrium price and the equilibrium quantity. (b) Calculate the consumer surplus at the equilibrium price and quantity. (c) Calculate the price elasticity of demand (at the equilibrium values).