Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Please refer to the image below and answer question 11
Transcribed Image Text:In each of the following markets find the market equilibrium. Calculate consumer
surplus, producer surplus and total surplus. Then consider the effect of a price floor
(or ceiling) imposed by the government. Find the quantity demanded Qd, quantity
supplied Qs and the corresponding surplus (or deficit) in the market. Find the effect
of the policy on consumer, producer and total surplus.
Demand:
Supply:
1 Q
1 Q
1
P = 10
Price floor =
7
P =
2 +
Demand:
Supply:
P =
10 -
Price floor =
2 Q
2 Q
7
P =
2 +
Demand:
Supply:
0.5 Q Price ceiling =
2 + 0.5 Q
3
P =
6 -
3
P =
Demand:
Supply:
P = 18 -
2 Q
Price floor = 10
P =
3 + 0.5 Q
Demand:
Supply:
0.5 Q Price ceiling
2 Q
P = 14 -
= 7
P =
4 +
Demand:
Supply:
P = 24 -
Price floor = 12
3 Q
1 Q
P =
4 +
Demand:
Supply:
7
P =
30 -
0.5 Q Price ceiling
= 14
P =
2 +
3 Q
Demand:
Supply:
8
P =
28 -
2 Q
Price floor = 24
P =
3 +
3 Q
Demand:
Supply:
9.
P = 30 -
3 Q
2 Q
Price floor = 21
P =
5 +
4 Q
1 Q
10
Demand:
P = 24 -
Price floor = 12
Supply:
P =
4 +
Demand:
Supply:
11
P =
60
3 Q Price ceiling = 11
P =
4 +
4 Q
Demand:
Supply:
4 Q
2 + 0.5 Q
12
P =
20
Price floor =
8
P =
Demand:
Supply:
4 Q Price ceiling =
4 Q
13
P = 10 -
P =
2 +
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education