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6. If the government institutes a price floor at P-$50 there will be a. Excess Demand 22 units b. Excess Demand = 16 units c. Excess Supply = 34 units d. Excess Supply = 18 units e. Excess Supply = 6 units

6. If the government institutes a price floor at P-$50 there will be a. Excess Demand 22 units b. Excess Demand = 16 units c. Excess Supply = 34 units d. Excess Supply = 18 units e. Excess Supply = 6 units

Microeconomics A Contemporary Intro
Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter5: Elasticity Of Demand And Supply
Section: Chapter Questions
Problem 15PAE
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82 66 50 38 32 24 16 D 8. 16 22 25 34 41 Q Use the graph above to answer questions #5-7 about the market for jeans. 5. If the market for jeans is in equilibrium, consumer surplus is a. $968 b. $836 c. $726 d. $484 e. $242 6. If the government institutes a price floor at P=$50 there will be a. Excess Demand = 22 units b. Excess Demand = 16 units c. Excess Supply = 34 units d. Excess Supply = 18 units e. Excess Supply = 6 units 7. A price floor at P=$50 will result in a loss of economics surplus, DWL, of at least a. $400 b. $256 c. $208 d. $64 e. $54 8. Adel, Beyoncé, and Christina Aguilera derive utility from consuming goods x and y according to the following utility functions: Adel: u^(x, y) = 4x + y Beyoncé: u* (x, y) = 5x + y Christina: u (x, y) = 3x + y They purchase x and y in the same market, so they all pay the same prices, p, and py. They all have the same income, I, and make purchases that maximize their utility. Adel is currently purchasing 30 units of x and 5 units of y. We can therefore conclude that a. Beyoncé is using all her money to buy x, while Christina is using all her money to buy y. b. Beyoncé is using all her money to buy y, while Christina is using all her money to buy x. c. Both Beyoncé and Christina are using all their money to buy x. d. Both Beyoncé and Christina are using all their money to buy y. e. Both Beyoncé and Christina are purchasing the same basket as Adel. 3
Transcribed Image Text:82 66 50 38 32 24 16 D 8. 16 22 25 34 41 Q Use the graph above to answer questions #5-7 about the market for jeans. 5. If the market for jeans is in equilibrium, consumer surplus is a. $968 b. $836 c. $726 d. $484 e. $242 6. If the government institutes a price floor at P=$50 there will be a. Excess Demand = 22 units b. Excess Demand = 16 units c. Excess Supply = 34 units d. Excess Supply = 18 units e. Excess Supply = 6 units 7. A price floor at P=$50 will result in a loss of economics surplus, DWL, of at least a. $400 b. $256 c. $208 d. $64 e. $54 8. Adel, Beyoncé, and Christina Aguilera derive utility from consuming goods x and y according to the following utility functions: Adel: u^(x, y) = 4x + y Beyoncé: u* (x, y) = 5x + y Christina: u (x, y) = 3x + y They purchase x and y in the same market, so they all pay the same prices, p, and py. They all have the same income, I, and make purchases that maximize their utility. Adel is currently purchasing 30 units of x and 5 units of y. We can therefore conclude that a. Beyoncé is using all her money to buy x, while Christina is using all her money to buy y. b. Beyoncé is using all her money to buy y, while Christina is using all her money to buy x. c. Both Beyoncé and Christina are using all their money to buy x. d. Both Beyoncé and Christina are using all their money to buy y. e. Both Beyoncé and Christina are purchasing the same basket as Adel. 3
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