QUESTION 5Refer to the graph below showing the Market for Flashlights.121086420.060SupplyDemand1002080Consider that the market for flashlights is described by the graph above and the market is currently in equilibrium. If the government imposes a pricefloor of $8, thenO the market is inefficient at the last flashlight sold because there is a surplus of flashlights in the market.the price sellers are willing to accept for the last unit sold is $8.the market is inefficient at the last flashlight sold because the marginal benefit is less than the marginal cost of that last flashlight.O the price buyers are willing to pay for the last unit sold is $8.

A price floor is an established lower boundary on the price of a commodity in the market. It is…

Answered: Consider that the market for…

Consider that the market for flashlights is described by the graph above and the market is currently in equilibrium. If the government imposes a price floor of $8, then

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Help please
Suppose the Hong Kong government imposes a price ceiling above the equilibrium price of flour. How does this price ceiling affect the price and the quantity sold of flour? Explain.
Over the past few year's consumer tastes and the number of buyers in the market for a game called 'pickle ball' have increased dramatically. Thus, the demand for tickets to pickle ball events has increased. Before this all started the equilibrium price of a ticket to a pickle ball event was negative. This means that: A few years ago, there would have been a surplus of tickets even at a price of zero, now the invisible hand has pushed prices to greater than zero. A) A few years ago, the quantity of tickets demanded was less than quantity supplied. B) Pickle ball event tickets resembled the market for recyclable cardboard a few years ago C) Greater demand for pickle ball tournament tickets will lead to a greater demand - and higher pay - for professional pickle ball players. D) All of the above. E) B and D only
Consider a hypothetical market for copper (q), where q is measured in 1000 tons. Suppose the supply of virgin copper is Sv = 10+5q. Suppose that the supply for recycled copper is Sr = 15+2.5q. Demand for copper is P = 65 - 1.5q. Note, buyers don't distinguish between recycled and virgin copper. The equilibrium price and output for copper is (hint: draw a graph) q=8.46, p = $52.31. q=0, p = $65. q=12.50, p = $46.25. O q=4.44, p = $58.33.
At a price of $2:29 per bushel, the supply of a certain grain is 7500 million bushels and the demand is 7600 million bushels. At a price of $2.4 per bushel, the supply is 7000 million bushels and the demand is 7500 million bushels (A) Find a price-supply equation of the form p mxb, where p is the price in dollars and x is the supply in milions of bushels (B) Find a price-demand equation of the form p mx +b, where p is the price in dollars and x is the demand in millions of bushels (C)Find the equilibrium point (D) Graph the price-supply equation, price-demand equation, and equilibrium point in the same coordinate system. (A) The price-supply equation is p (Type an exact answer) -CTD
When the price is above the equilibrium, explain how market forces move the market price to equilibrium. Do the same when the price is below the equilibrium.
Calculate the producers' surplus (in dollars) for the supply equation at the indicated unit price p. (Round your answer to the nearest cent.) p = 7 + 2g p = 20 ,1/3.
a) In the market for sugary drinks, the current equilibrium price is $10 and the equilibrium quantity is 30. The demand choke price is $50 and the supply choke price is $5 (a) Draw a demand and supply diagram, and shade the regions that represent consumer and producer welfare. Calculate the Total welfare in this market b) In this market, you now know that E D = −0.4 and E S = 1.2. Redraw your diagram in part (a) with the correct sloping curves. In this part you do not have to shade the welfare regions. All you need to do is redraw the diagram with the same equilibrium price and quantity, and choke prices but adjust the slope of each curve to reflect their respective elasticity c) If a tax was to be implemented in this market, what percentage of the burden is borne by the buyer? d) The government plans to discourage the consumption of sugary drinks and as such, they implemented a $1 tax on every bottle produced. In this situation, the suppliers are taxed directly but they hope to pass…
Suppose the demand for a product is given by Q=51-7P, supply is given by Q=31+4P. Calculate the equilibrium price for this market. Please round your answer to one decimal.
In Camarillo, if the equilibrium price of cooking oil is $5.90 per pound, and if the government adopts a price floor for cooking oil at $6.15 per pound, what will happen?
In a market, if the price of a good is set below the equilibrium price, what will happen? a) Shortage b) Surplus c) Equilibrium d) Price ceiling
The market for peanut butter in Winnipeg has the following supply and demand curves: Demand: P = 30 - 0.5Q Supply: P = 6 + 1.5Q What is the equilibrium price in this market?