100 PRICE 90 80 70 45 40 30 20 10 Supply Demand 2 4 6 8 10 12 14 16 18 20 QUANTITY Refer to Figure 7-7. If the government imposes a price ceiling of $55 in this market, then consumer surplus will a. decrease by $75 b. decrease at $100 c. remain the same because a price ceiling of $55 is non-binding. d. increase by $75

100 PRICE 90 80 70 45 40 30 20 10 Supply Demand 2 4 6 8 10 12 14 16 18 20 QUANTITY Refer to Figure 7-7. If the government imposes a price ceiling of $55 in this market, then consumer surplus will a. decrease by $75 b. decrease at $100 c. remain the same because a price ceiling of $55 is non-binding. d. increase by $75

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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please show the consumer surplus and producer surplus in the graph 13. Refer to Figure 6-7. Which of the following price controls would cause a shortage of 20 units of the good? a. a price ceiling set at $6 b. a price ceiling set at $5 c. a price floor set at $9 d. a price floor set at S8 Figure 7-19 Price Ayddns 15 70 65 60 55 45 35 30 25+ 20+ 15 10 Demand i à is is 16 n1 21 22 23 a 25 Deannty 14. Refer to Figure 7-19. If the govermment imposes a price ceiling of $55 in this market, then total surplus will be a. S187.50. b. S125.00. c. $250.00. d. $266.67.
Price (Dollars per unit) 12.00 10.00 8.00 6.00 4.00 2.00 0.00 Table 7-11 Quantity Demanded Quantity Supplied (Units) 36 30 24 18 12 6 0 (Units) 0 3 6 Refer to Table 7-11. Both the demand curve and the supply curve are straight lines. If the price is $4 but only 6 units are bought and sold, consumer surplus will be a. $28. b. $42. c. $21. d. $36. 12 15 18
Figure 7-5 Refer to Figure 7-5. If the supply curve is S and the demand curve shifts from D to D', what is the increase in producer surplus to existing producers? a. $5,625 b. $3,125 c. $625 d. $2,500
do fast.
Figure 7-4 Price P₂ P₁ с A D 9₂ B E 9₂2 Quantity Refer to Figure 7-4. What does area A represent? a. the increase in consumer surplus that results from new consumers entering the market as the result of price rising from P1 to P2 b. the increase in producer surplus to those producers already in the market when price rises from P1 to P2 C. the increase in producer surplus to new producers entering the market as the result of price rising from P1 to P2 Od. an increase in total surplus when sellers are willing and able to increase supply from Q1 to Q2 X
13
Figure 7-6 Price $28 26- 24- 22 20 18.- 16 14 12 10 8 6 4 2 0 10 30 50 70 90 110 130 150 Quantity Refer to Figure 7-6. At the equilibrium price, what would consumer surplus be? a. $1120 * b. $480 C. $640 d. $1280.
What is Consumer Surplus at a price of $5? Price Quantity Demanded Quantity Supplied 12 1 6 10 2 5 8 3 4 6 4 3 4 5 2 2 6 1 Multiple Choice $4 $20 $16
What is Producer Surplus at a price of $5? Price 12 10 8 6 42 Quantity Demanded 1 2 WN 3 456 Quantity Supplied 6 5 4 3 2 1
Price $150 200 250 300 350 400 450 500 550 600 650 1. Equilibrium price $350 2. Quantity 50 3. Consumer Surplus? 6250 4. Producer Surplus? 6250 500 7. Remove the tax. Imposes a price floor $100 below the equilibrium price a Fiquilibrium price $350 and quantity? 50 Quantity Demanded 100 90 5. What is the total surplus? 12500 6. Suppose a $200 unit tax is placed on the good being sold. How much tax revenue is to be made? 4000 b. Resulting amount of surplus/shortage if any (0 if none) 0 8. Remove the price floor Impose a price ceiling $50 below the equilibrium price a Equilibrium price $350 and quantity? 50 b. Resulting amount of surplus/shortage (0 if none) o 80 70 60 50 40 30 20 10 0 Quantity Supplied 10 20 30 40 50 60 70 80 90 100 . How much deadweight loss is created (0 if none)?
2:43 PM Fri May 3 × Timed Test Question 5 Table 6-1 Price Quantity Quantity Demanded Supplied $20 2400 $30 2000 200 $40 1600 400 $50 1200 600 $60 800 800 $70 400 1000 $80 0 1200 11 Final Exam: Attempt 1 Refer to Table 6-1. Suppose the government imposes a price ceiling of $30 on this market. What will be the size of the shortage in this market? 1200 units 2 400 units 30 units 1800 units 4 of 30 completed Drafts Are Disabled Submit
1 and 2 please