In 2020 the Malaysian federal government-imposed price controls on face masks. Face ma ceiling price set at 70 cents from Nov 1, 2020 (Source: The Star: 27 Oct 2020). Which of the following statements is true? O a. This policy was unusual because it resulted in no deadweight loss to society. O b. The producers gained from this policy because producer surplus was larger than it would have been under free market equilibrium. O C. The consumers gained from this policy because consumer surplus was larger than it would have been under free market equilibrium. d. The price controls will cause a chronic excess supply of face masks.

In 2020 the Malaysian federal government-imposed price controls on face masks. Face ma ceiling price set at 70 cents from Nov 1, 2020 (Source: The Star: 27 Oct 2020). Which of the following statements is true? O a. This policy was unusual because it resulted in no deadweight loss to society. O b. The producers gained from this policy because producer surplus was larger than it would have been under free market equilibrium. O C. The consumers gained from this policy because consumer surplus was larger than it would have been under free market equilibrium. d. The price controls will cause a chronic excess supply of face masks.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A law establishing a minimum legal price for a good or service (the minimum wage for example) is known as O a price floor. O a price ceiling. O a price wall. O an equilibrium price.
Consider a market in which supply and demand are both unit elastic at the equilibrium (equals 1 in absolute value). Which of the following statements is true? a. Consumer and producer surplus are equal. O b. None of the other answers are correct. O c. Consumer surplus is larger than producer surplus. O d. Producer surplus is larger than consumer surplus.
Which of the following pair of events leads to a DEFINITE decrease in the price of baby food? * An increase in the birth rate and a decrease in wages for workers in the baby food industry. O An increase in the birth rate and an increase in regulations for baby food production. O An increase in the birth rate and a decrease in regulations for baby food production. A decrease in the birth rate and a decrease in wages for workers in the baby food industry. A decrease in the birth rate and an increase in wages for workers in the baby food industry.
A black market is O A. a market in which buying and selling occur at prices that violate government price regulations. O B. a market in which participants exchange goods and services without using money. OC. a market in which there is no deadweight loss. O D. a market in which buying and selling occur at legal prices. O E. a market in which there are non-binding price controls.
Which of the following events can create the most significant shift in the demand curve? Supply increases or decreases. O Price of the good changes. O Government subsidies Population grows in a particular market area.
Question 42 If a binding price floor is imposed on the drone market, then the demand for drones will decrease. O the supply of drones will increase. O a surplus of drones will develop. a shortage of drones will develop. hs
macro question 2
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O The demand curve for a product is given by Qp = 400-20P and the supply curve for a product is given by Qs = 16P-32. O a. Illustrate the demand curve and the supply curve on the same graph. O b. Find the equilibrium price and quantity. O c. Find numerical values for the consumer surplus and the producer surplus. O d. Identify consumer surplus and producer surplus on your graph.
Using Supply and Demand to Analyze Markets-End of Chapter Problem Increases in demand generally result in increases in consumer surplus. However, this is not always the case. Of the following scenarios, which one is most likely to result in a decrease in consumer surplus? Supply is relatively elastic, and demand becomes highly inelastic when it increases. Supply and demand are both unit elastic and demand increases. Supply is inelastic, and demand becomes highly elastic when it increases. O Supply is relatively elastic, and demand becomes highly elastic when it increases.
Refer to the figure at right. When the minimum imposed price is P2. areas B + C are Price A. the deadweight loss to both producers and consumers as a result of the price control. P2 B B. gains transferred from consumers to producers. Po C. the deadweight loss to producers as a result of the price control. D. the deadweight loss to consumers as a result of the price control. Qo Q2 Quantity