If a price ceiling is set below the market equilibrium price, which of the following outcomes is most likely to occur? Group of answer choices A) A surplus of the good in the market B) An increase in the quantity supplied of the good C)A shortage of the good in the market D) The market will clear at the new price

If a price ceiling is set below the market equilibrium price, which of the following outcomes is most likely to occur? Group of answer choices A) A surplus of the good in the market B) An increase in the quantity supplied of the good C)A shortage of the good in the market D) The market will clear at the new price

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter4: Markets In Action

Section: Chapter Questions

Problem 3SQ

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Which of the following would not cause market demand for a normal good to decline? a. An increase in the price of a substitute b. An increase in the price of a complement c. A decline in consumer income d. Consumer expectations that the good will go on sale in the near future e. An announcement by the Surgeon General that the product contributes to premature death
If, at the current price, there is a surplus of a good, then: A) the quantity demanded is greater than the quantity supplied. B) the market must be in equilibrium C) the price is above the equilibrium price D) Both A and C.
Question 1 Hurricane Katrina damaged a large portion of refining and pipeline capacity when it swept through the Gulf coast states in August 2005. As a result of this, many gasoline distributors were not able to maintain normal deliveries. At the pre-hurricane equilibrium price (i.e., at the initial equilibrium price), we would expect to see a surplus of gasoline. the quantity demanded equal to the quantity supplied. a shortage of gasoline. an increase in the demand for gasoline.
If a price ceiling of $7 is set, the quantity of soft drink to be exchanged will be 3. When a price ceiling is set below the equilibrium price, quantity demanded will exceed quantity supplied, and excess demand or shortages will result.
When a market has a surplus, the quantity demanded is greater than quantity supplied. Select one: True False
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…
Consider a market where the equilibrium price for a good is $17 and the equilibrium quantity is 350 units. Assume that the quantity supplied at an above - equilibrium price is 5 times the equilibrium quantity, and the quantity demanded at the above - equilibrium price is 1/3 the equilibrium quantity. Calculate the surplus in the market at the above - equilibrium price. If necessary, round any intermediate calculations to one decimal place and your final answer to the nearest whole number.
Assuming an increase in Demant and decrease in Supply, which of the following statements is TRUE? The price of the good will decrease. The quantity of the good will definitely decrease. The price of this good will definitely increase. There will be a permanent shortage of this good. The new equilibrium quantity may increase, decrease, or stay the same. A surplus of this good will result from these changes in Supply and Demand. What new equiLibrium quantity will result depends on the relative magnitude of the changes and the shapes of the Demand and Supply curves. We cannot determine what will happen to price.
The task I am struggling with: Determine the supply and demand function and the equilibrium point.Graph the results.Demand. If a given product is priced at $7 per unit, there is a demand for 4 units;if a given product is priced at $6 per unit, there is a demand for 8 units.Supply. If a given product is priced at $9 per unit, suppliers are willing to produce4 units; if a given product is priced at $23 per unit, suppliers are willing toproduce 12 units. Thank you very much.
True or false. There is no surplus or shortage when there is an equilibrium in the market.
A rise in the price of a substitute in production for a good leads to A) an increase in the supply of that good. B) no change in the supply of that good; instead there is a change in the quantity supplied. C) a decrease in the quantity of that good supplied. D) no change in either the supply or the quantity supplied of the good. E) a decrease in the supply of that good.
Setting a price ceiling below the equilibrium price will result in: Question 10 options: A) a shortage, where the quantity supplied exceeds the quantity demanded. B) no impact on the quantity demanded or on the quantity supplied. C) a surplus, where the quantity supplied exceeds the quantity demanded. D) a shortage, where the quantity demanded exceeds the quantity supplied.