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1) Suppose the following data represents the market for Russian staple foods. Use this data to construct the graph for this market. 2) Price (Rubles) Demand Supply 600 200 50 3) 2 250 3 500 300 450 350 5 400 400 350 450 4) Russian Staple Foods 6. 2 100 200 300 400 500 600 700 Quantity (millions of pounds) Price (Rubles)

1) Suppose the following data represents the market for Russian staple foods. Use this data to construct the graph for this market. 2) Price (Rubles) Demand Supply 600 200 50 3) 2 250 3 500 300 450 350 5 400 400 350 450 4) Russian Staple Foods 6. 2 100 200 300 400 500 600 700 Quantity (millions of pounds) Price (Rubles)

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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NAME SUPPLY AND DEMAND - 3.5.6 Price Ceilings and Price Floors Homework DIRECTIONS Each of these three news articles describes either a government-imposed price ceiling or price floor. Read the title and excerpt, and then answer the questions that follow. RUSSIA MAY SET PRICE CEILING FOR STAPLE FOODS AS DROUGHT FUELS INFLATION 14 August 2010 - by Anton Doroshev & Maria Levitov (Bloomberg) Russia may set retail price ceilings for basic foods, Deputy Industry and Trade Minister Stanislav Naumov said. The worst drought in at least 50 years has slashed harvests across Russia, fueling inflation..Naumov told reporters today in Moscow "It's necessary to institute a maximum retail price for those products that are in short supply".President Dmitry Medvedev's top economic advisor said he opposes imposing maximum prices. 1) Suppose the following data represents the market for Russian staple foods. Use this data to construct the graph for this market. 2) At equilibrium, what are the following? a) Price: b) Quantity Demanded: c) Quantity Supplied: Price (Rubles) Demand Supply 600 200 3) Suppose Stanislav Naumov decides to put a price ceiling at 3 rubles. Draw this price ceiling on the graph. a) New quantity demanded: 2 550 250 3 500 300 4 450 350 b) New quantity supplied: c) Amount of shortage: 5 400 400 6 350 450 4) Why might Dmitry Medvedev's top economic advisor oppose a price ceiling? Russian Staple Foods 100 200 300 400 50 600 700 Quantity (millions of pounds) S ECONΟΜICS Copyright © 2013 N.S. PAGE 1 Price (Rubles)
Transcribed Image Text:NAME SUPPLY AND DEMAND - 3.5.6 Price Ceilings and Price Floors Homework DIRECTIONS Each of these three news articles describes either a government-imposed price ceiling or price floor. Read the title and excerpt, and then answer the questions that follow. RUSSIA MAY SET PRICE CEILING FOR STAPLE FOODS AS DROUGHT FUELS INFLATION 14 August 2010 - by Anton Doroshev & Maria Levitov (Bloomberg) Russia may set retail price ceilings for basic foods, Deputy Industry and Trade Minister Stanislav Naumov said. The worst drought in at least 50 years has slashed harvests across Russia, fueling inflation..Naumov told reporters today in Moscow "It's necessary to institute a maximum retail price for those products that are in short supply".President Dmitry Medvedev's top economic advisor said he opposes imposing maximum prices. 1) Suppose the following data represents the market for Russian staple foods. Use this data to construct the graph for this market. 2) At equilibrium, what are the following? a) Price: b) Quantity Demanded: c) Quantity Supplied: Price (Rubles) Demand Supply 600 200 3) Suppose Stanislav Naumov decides to put a price ceiling at 3 rubles. Draw this price ceiling on the graph. a) New quantity demanded: 2 550 250 3 500 300 4 450 350 b) New quantity supplied: c) Amount of shortage: 5 400 400 6 350 450 4) Why might Dmitry Medvedev's top economic advisor oppose a price ceiling? Russian Staple Foods 100 200 300 400 50 600 700 Quantity (millions of pounds) S ECONΟΜICS Copyright © 2013 N.S. PAGE 1 Price (Rubles)
PRICE CEILINGS AND PRICE FLOORS HOMEWORK SUPPLY AND DEMAND - 3.5.6 MILK PRICES DESERVE FLOOR C) S.C. LEGISLATOR WANTS TO CAP GAS PRICES 23 February 2012 - by Arden Tewksbury (Capital Press) 6 June 2011 - by Ron Barnett (USA Today) Several national and multi-state organizations have sent a letter to all members of Congress urging them to place a price floor of $20 per hundredweight under all milk used for manufacturing dairy products.According to USDA figures the all-milk price in 2009 was $12.80 per hundredweight and the average cost of producing milk in 2009 was $22.28 per hundredweight. South Carolina state Sen. Dick Elliott has a solution for high gasoline prices: Cap how much oil companies can raise them.."l don't like to interfere with the competitive free enterprise system, but in this case we don't believe the competitive free enterprise system is fully at work," he says. 5) Use the following data to construct the graph for the market for milk. 9) Use the following data to construct the graph for the market for gasoline. Price ($) 10 12 14 16 18 20 22 24 Price ($) 2.50 2.75 3.00 3.25 3.50 3.75 Demand 400 375 350 325 300 275 250 225 Demand 34 31 28 25 22 19 Supply 200 300 400 500 600 700 800 900 Supply 15 10 20 25 30 35 Milk Gasoline $26 $4.00 $24 $3.75 $22 $3.50 $20 $3.25 $18 $16 $3.00 $14 $2.75 $12 $2.50 $10 $8 $2.25 100 200 300 400 500 600 700 800 900 1000 10 15 20 25 30 35 40 Quantity of Hundredweights (millions) Quantity (millions of barrels) 6) At equilibrium, what are the following? 10) At equilibrium, what are the following? a) Price: a) Price: b) Quantity: 7) Suppose the price floor of $20 gets approved. Draw the price floor on the graph. b) Quantity: I1) Suppose a price ceiling of $2.75 gets passed in Congress. Draw the price ceiling on the graph. a) New quantity demanded: b) New quantity supplied: c) Amount of shortage: 12) This price ceiling is designed to help consumers. How might it actually end up hurting consumers instead? a) New quantity demanded: b) New quantity supplied: c) Amount of surplus: 8) The author is in favor of the price floor. Do you agree with him? Why or why not? ($) aɔHd Price ($)
Transcribed Image Text:PRICE CEILINGS AND PRICE FLOORS HOMEWORK SUPPLY AND DEMAND - 3.5.6 MILK PRICES DESERVE FLOOR C) S.C. LEGISLATOR WANTS TO CAP GAS PRICES 23 February 2012 - by Arden Tewksbury (Capital Press) 6 June 2011 - by Ron Barnett (USA Today) Several national and multi-state organizations have sent a letter to all members of Congress urging them to place a price floor of $20 per hundredweight under all milk used for manufacturing dairy products.According to USDA figures the all-milk price in 2009 was $12.80 per hundredweight and the average cost of producing milk in 2009 was $22.28 per hundredweight. South Carolina state Sen. Dick Elliott has a solution for high gasoline prices: Cap how much oil companies can raise them.."l don't like to interfere with the competitive free enterprise system, but in this case we don't believe the competitive free enterprise system is fully at work," he says. 5) Use the following data to construct the graph for the market for milk. 9) Use the following data to construct the graph for the market for gasoline. Price ($) 10 12 14 16 18 20 22 24 Price ($) 2.50 2.75 3.00 3.25 3.50 3.75 Demand 400 375 350 325 300 275 250 225 Demand 34 31 28 25 22 19 Supply 200 300 400 500 600 700 800 900 Supply 15 10 20 25 30 35 Milk Gasoline $26 $4.00 $24 $3.75 $22 $3.50 $20 $3.25 $18 $16 $3.00 $14 $2.75 $12 $2.50 $10 $8 $2.25 100 200 300 400 500 600 700 800 900 1000 10 15 20 25 30 35 40 Quantity of Hundredweights (millions) Quantity (millions of barrels) 6) At equilibrium, what are the following? 10) At equilibrium, what are the following? a) Price: a) Price: b) Quantity: 7) Suppose the price floor of $20 gets approved. Draw the price floor on the graph. b) Quantity: I1) Suppose a price ceiling of $2.75 gets passed in Congress. Draw the price ceiling on the graph. a) New quantity demanded: b) New quantity supplied: c) Amount of shortage: 12) This price ceiling is designed to help consumers. How might it actually end up hurting consumers instead? a) New quantity demanded: b) New quantity supplied: c) Amount of surplus: 8) The author is in favor of the price floor. Do you agree with him? Why or why not? ($) aɔHd Price ($)
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