28 P 24 20 16 12 8 4 S D 0 0 4 8 12 16 20 24 Q 03. What would be the impact in this market, of a price floor set at $16 a) A market surplus of 7 b) A market surplus of 10 c) A market surplus of 21 d) There would be no impact e) A market shortage of 7 f) A market shortage of 10 g) A market shortage of 21

01. What would be the impact in this market, of a price floor set at $10     a) A market surplus of 7     b) A market surplus of 10     c) A market surplus of 21     d) There would be no impact     e) A market shortage of 7     f) A market shortage of 10     g) A market shortage of 21 02. What would be the impact in this market, of a price floor set at $13     a) A market surplus of 7     b) A market surplus of 10     c) A market surplus of 21     d) There would be no impact     e) A market shortage of 7     f) A market shortage of 10     g) A market shortage of 21

4. What would be the impact in this market, of a price floor set at $22     a) A market surplus of 7     b) A market surplus of 10     c) A market surplus of 21     d) There would be no impact     e) A market shortage of 7     f) A market shortage of 10     g) A market shortage of 21 5. What would be the impact in this market, of a price ceiling set at $4     a) A market surplus of 7     b) A market surplus of 10     c) A market surplus of 21     d) There would be no impact     e) A market shortage of 7     f) A market shortage of 10     g) A market shortage of 21

The diagram below represents the market for butter. 2 4 8 10 12 14 Quantity Demanded and Supplied of Butter (thousands of kilograms/year) Refer to Figure 4-1. What is the shortage or surplus of butter at a market price of $5 per kilogram? a shortage equal to 4000 kilograms of butter a surplus equal to 4000 kilograms of butter a surplus equal to 7000 kilograms of butter a shortage equal to 7000 kilograms of butter Price of butter (per kilogram) %S4

1) Below is the demand and supply schedule for the market for personal chefs. These are chefs that are hired to come into the client’s home to prepare meals for them. Show all your calculations used to answer the following questions. a) Calculate the equilibrium price and quantity b) Calculate the consumer surplus when this market is in equilibrium. c) Calculate the producer surplus, when this market is in equilibrium. d)calculate the excess demand or supply at the price of $35,$70,$25 and $65 e) If tax of 5$ imposed compute the consumer and producer tax burden   Price per hour Qty supplied Qty demanded 20 0 29 25 1 26 30               3 23 35 5 20 40 7 17 45 9 14 50 11 11 55 13 9 60 15 7 65 17 5 70 19 3 75 21 1 80 23 0

The following figure illustrates the demand and supply curves for a good. Price (5) 888 60 40 0 5 10 20 30 Supply Demand Quantity (unit) Refer to the figure above. Which of the following is likely to happen if a price control of $80 is imposed in the market? O There will be a shortage of 25 units in the market. O There will be a surplus of 10 units in the market. O There will be a surplus of 25 units in the market. O There will be a shortage of 10 units in the market.

Price of X ($) 20 18 16 14 12 10 8 6 4 2 0 1 S1 so 2 3 4 5 6 D Quantity of Good X Maple Electronics has identified their demand D. Suppose they are moving from the Supply S1 to 50. If a price ceiling of $6 is imposed for the new supply, what is the resulting full economic price? Answer with the number alone.

10) Refer to the accompanying figure. When this market is in equilibrium, total producer surplus in the market is per day. 60 50 40 30 Price ($/restaurant meal) 20 10 0 A) $500 B) $375 C) $250 D) $0 S D 5 10 15 20 25 30 35 40 45 50 Quantity (restaurant meals/day)

Use the PPF to answer the following questions: D Hard drives A 525 LE 450 400 350 B 300 •H 250 200 G. 150 100 50 5 10 15 20 25 30 35 40 45 50 Sweaters (thousands) (a) At point F, how many sweaters are being produced? How many hard drives? (b) Label points A-H as either efficient, inefficient, or unattainable. (c) Can we determine if point F is productively efficient? If so, is it productively efficient? (d) Can we determine if point F is allocatively efficient? If so, is it allocatively efficient?

According to the graph below, with a price ceiling present in this market, if the supply curve for gasoline shifts from Sl to S2. P P2 P3 00000 P1 $2 S1 Ceiling Q2 Q1 The price will increase to P2. A surplus will occur at the new market price of P2. The market price will stay at P1 due to the pricing ceiling. A shortage will occur at the price ceiling of P3. Nothing happens to the equilibrium.