70 Supply 60 50 40 30 20 10 Demand 1000 2000 3000 4000 5000 6000 7000 8000 Quantity (number of hours of gardening service per month) FIGURE 5-5 Refer to Figure 5 – 5. Suppose this market for gardening services is in a free - market equilibrium. If the government then imposes a price floor of $50 per hour for gardening services, the result would be O A. a loss of economic surplus of the area 1. O B. a loss of economic surplus of the areas 6 and 7. OC. a loss of economic surplus of the areas 2 and 6. O D. a loss of economic surplus of the areas 2, 3, 4, 6, and 7. O E. a loss of economic surplus of the areas 1, 2, 3, and 4. (moy sad ss) aOud

70 Supply 60 50 40 30 20 10 Demand 1000 2000 3000 4000 5000 6000 7000 8000 Quantity (number of hours of gardening service per month) FIGURE 5-5 Refer to Figure 5 – 5. Suppose this market for gardening services is in a free - market equilibrium. If the government then imposes a price floor of $50 per hour for gardening services, the result would be O A. a loss of economic surplus of the area 1. O B. a loss of economic surplus of the areas 6 and 7. OC. a loss of economic surplus of the areas 2 and 6. O D. a loss of economic surplus of the areas 2, 3, 4, 6, and 7. O E. a loss of economic surplus of the areas 1, 2, 3, and 4. (moy sad ss) aOud

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Based on the graph, the resulting consumer and producer surplus at a price of $25 are, respectively, 50 45 40 35 30 25 20 15 10 + 5 Price $4,000 and $4,000. $9,000 and $4,000. O $2,000 and $4,000. S 100 200 300 400 500 600 700 800 Quantity to D -2°C
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.
Figure 7-1 Demand A B D QUANTITY Refer to Figure 7-1. Suppose that the price falls from P2 to P1 Area B represents the O a. decrease in producer surplus in the market when the price increases from P1 to P2. b. decrease in producer surplus that results from a downward-sloping demand curve. Oc.consumer surplus to new consumers who enter the market. O d. additional consumer surplus to initial consumers when the price falls. PRICE
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
Price 300 275 + 250 225 200 175 + 150+- 125 + 100 75+ 50 25 S D 25 50 75 100 125 150 175 200 Quantity D' Show Transcribed Text C. $2,185 d. $625 If the supply curve is S and the demand curve shifts from D to D', What will be the increase in the producer surplus due to new producers entering the market? a. $5,625 b. $1,500
Help plz 12
Figure 7-3 PRICE 20 16 15 21 8 6.5 2 3 QUANTITY Supply 5 Refer to Figure 7-3. If the price of the good is $13.50, then producer surplus is O a. $17.50 O b. $18.50. O c. $19.00. O d. $7.50
Figure 11.4.3 Price ($) Supply MC = MSC X MSB Demand MB 200 400 600 800 Quantity (students per year) Look at the market for private education in Figure 11.4.3. In the private education market, the quantity produced is 4000 OO 3000 2000 1000 0 O A. efficient, but price is too low to clear the market. B. less than the efficient quantity. O C. efficient, but no single price can coordinate smart individual choices and smart social choices. D. greater than the efficient quantity. E. efficient, but the price is too high to clear the market.
Figure 7-8 Price Equilibrium price A B с D E F G Q₂ Equilibrium quantity a. E+F b. A+B+D+D+E+F Supply OC. C+F+GX d. C+F+D Demand Refer to Figure 7-8. At the market-clearing equilibrium, which area represents total producer surplus? Quantity
3. Effects of rent control Rent controls require that landlords set apartment prices below the equilibrium price level. An immediate effect is an apartment rental shortage (excess demand for apartments), because at the regulated price the quantity of apartments demanded is greater than the quantity supplied. When landlords are prevented by cities from charging market rents, which of the following listed outcomes are common in the long run? Check all that apply. The quantity of available rental housing units falls. Landlords earn lower profits from renting housing units, but the rent charged has no effect on either the quantity or quality of rental units. Nonprice methods of rationing emerge. Efficient use of housing space results.
Figure 4-4 Price (dollars per pound) $9 6 3 4,000 8,000 12,000 Supply Demand Quantity (pounds) Refer to Figure 4-4. The figure above represents the market for pecans. Assume that this is a competitive market. If 4,000 pounds of pecans are sold, O consumer surplus equals zero. O the marginal benefit of each of the 4,000 pounds of pecans equals $3. O the deadweight loss is equal to $12,000. O marginal benefit is equal to marginal cost.