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- Suppose the market price of wheat is $7 a bushel and a price ceiling is set at $9 a bushel. What is the impact of this price ceiling?The government decides that the sugar price support program is getting too expensive. It abandons the support price program and instead assigns a marketing quota to each sugar producer. This quota gives the holder the right to sell sugar on the market and can be transferred to other producers. Altogether the quotas allocate to sugar growers add up to 9 million cwt. Please grab this problem, indicating clearly the market price and quantity. Not sure if this is necessary for the question but given is demand for sugar: Q= 20 - P Supply for sugar: Q = 2 + P quantities are in million hundredweight (cwt) and price is dollars per cwt. picture is of previous question that goes along to help answer with this one. I am needing help with number 3 that is picturedGiven the following information QD = 240-5p QS = P Where QD is the quantity demanded, Qs is the quantity supplied and P is the price. Suppose that the government decides to impose a tax of $12 per unit on sellers in the market. Determine Demand an Supply equation after the tax
- Your uncle is very upset because after a recent snow storm he was charged $300 by a private snow- removal company to clear his driveway. He wants to petition the local village government to pass a law to put a cap on how much firms can charge for clearing driveways. As a student of economics, your uncle asks your advice on the wording of his petition. Provide a short response to your uncle in the form of a letter. Do you agree with him on the price ceiling, or disagree? How should this issue best be addressed?Select the area(s) that represent CONSUMER SURPLUS before the price floor is imposed? (select all that apply)In a perfectly competitive market for cheese with downward sloping demand and upward sloping supply, the equilibrium price is $12 per kilo. If the government imposes a price ceiling of $10, we can conclude that the government policy will: Select one: a. reduce the number of units sold only if demand is elastic b. decrease producer surplus and decrease total surplus c. reduce the number of units sold only if demand is inelastic d. decrease producer surplus but increase total surplus e. increase producer surplus but decrease total surplus
- Please explainlooking for help double-checking this homework question. I know to use the choke price for y-intercept but then I get lost. I solved it from what I think were the correct steps but looking for someone to check it and help me if it is not right.1) If a price ceiling is lower than the equilibrium market price, then a) The price ceiling is non-binding, and therefore the price is held at the price ceiling. b) The price ceiling is binding, and therefore the price is held at the price ceiling. c) The price ceiling is non-binding, and therefore the price is the equilibrium market price. d) The price ceiling is binding, and therefore the price is the equilibrium market price. e) None of the above.
- Question 9 Setting a price ceiling below the equilibrium price can result in a surplus, where the quantity demanded exceeds the quantity supplied. a shortage, where the quantity demanded exceeds the quantity supplied. a surplus, where the quantity supplied exceeds the quantity demanded. a shortage, where the quantity supplied exceeds the quantity demanded. no impact on the quantity demanded or the quantity supplied. Question 10 US minimum wage law is an example of a price floor. price ceiling. law that requires quantity demanded to be equal to quantity supplied. law that allows individual employers and employees to make free decisions. law that sets the minimum number of hours that an employee must work for wages during the week. Question 11 Gross domestic product (GDP) is best defined as the total market…Refer to the figure entitled "Market for Meds". If a price ceiling is imposed at $4, what will be the change in consumer surplus? Price (in $) 10 8 2 0 0 10 Market for Meds 20 30 Quantity 40 So Do 50 1) Consumer surplus will fall by 2.5. 2) Consumer surplus will increase by 2.5. 3) Consumer surplus will decrease by 17.5. 4) Consumer surplus will increase by 17.5. 5) None of the above. 60Calculate the producer surplus when the market price is $34 and the willingness to sell the product is $27