Refer to Figure 5 - 5. Suppose this market for gardening services is in a free - market equilibrium. If the government then imposes a price floor of $50 per hour for gardening services, the result would be

Refer to Figure 5 - 5. Suppose this market for gardening services is in a free - market equilibrium. If the government then imposes a price floor of $50 per hour for gardening services, the result would be

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: 100 90 80 ATC 70 50 30 AVC 20 MC 10 + 0 0 5 10 15 20 25 30 35 40 45 50 QUANTITY (Thousands of pans)…

A: In perfect competition we assume that the marginal cost curve is same as the supply curve. The below…

Q: If you stay in-state you can attend college for $6000 let year, but pay $950 per month in rent. Or…

A: Option A (in state)College fees=$6000Annual rent=$950*12=$11400Annual cost=$6000+$11400=$17400

Q: Use the exact time to find the due date of a loan that is made on February10of aleap year and is due…

A: The time of the year can be used in accordance to the exact time wherein 365 days of the normal year…

Q: Carson used $800 000 of their savings to open a coffee shop. The savings account paid 2% interest.…

A: We know that the economic profit is the difference between the total sales revenue of output and the…

Q: PLABOR МIC $7.00 -S $5.25 $4.50 MVP QLABOR 1000 1500

A: Monopolist equilibrium is found at the intersection marginal input cost curve and Marginal value…

Q: Please help me with this question in detail. Thank you

A: 1) Profit maximization occurrs at the point of equilibrium where MR = MCSo equilibrium occurs at…

Q: Answer b thru d

A: (b) Profit maximising output for a monopoly is where MR=MC; In this case it is at 3 cars; Now we…

Q: Laura has seven years to pay off a $23000 student loan at 6% per year, compounded monthly. a)…

A: Loans when paid back on a recurring period, the payback amount includes the basic principal and an…

Q: on may 29, 2017, leah deposited $498 into a savings account that earned simple interest of 1.27%.…

A: Here total days for which the interest will be calculated are 3days in May , 30 days in June and 28…

Q: Farmer Sam's farm is in a hilly section of the state. Erosion has always been a problem, but in…

A: ANS) Present value is today’s value of a dollar receivable in future. thanks to uncertainty, present…

Q: Marquesa earns money and can spend money only this year and next year. Her utility is U(c1, c2) =…

A: Utility function shows hou much satisfaction is derived from the consumption of given goods. Law of…

Q: Menchie bought his brother a laptop 5 years ago which has a cost of around 25,000PhP. The laptop’s…

A: The given variables are: Initial cost = PhP 25,000 Life = 10 years Semi annual maintenance after 5…

Q: Hospitality Enterprises is planning to build a new 112 room inn in Martin. The initial cost of land…

A: Given annual maintenance cost = $25000 MARR = 5% Salvage value = $100000 Life of investment = 20…

Q: Assume you borrow $2,000 now at 7% per year for 10 years and you must repay the loan in equal yearly…

A: Given: Present value (PV)=$ 2000 Number of years (n)=10 Interest rate (r)=7%

Q: A municipal waste treatment plant with state-of-the-art environmental technology and controls is…

A: Given, Installation Cost = $8 million Repair Cost (after 6 years) = $3 million Repair Cost (after 10…

Q: is based on the equivalent worth of all cash inflows and outflows at the end of the planning O a.…

A: Cash flow is defined as amount of cash or cash equivalents that are transferred in and out of the…

Q: Barbara wants to triple the money currently in her account that earns 3.5% per year interest. How…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: typing clear no chatgpt used i will give 5 upvotes i need both answers

Q: Jim Smith is considering purchasing a new car. The price of the car is $51000, and Jim hopes to keep…

A: The objective of the question is to calculate the total and average costs of owning a car for 6…

Q: Tandem Bikes manufactures exercise bicycles built for two. It sells a cycle for $196 (custom painted…

A: Given: The selling price of the cycle: $196 Total variable cost=$77 Total fixed cost=$120,000

Question

! pls explain for the correct option and get it done in 10-15 min I'll give multiple likes

70
Supply
60
50
40
2
30
20
10
Demand
1000 2000 3000 4000 5000 6000 7000 8000
Quantity (number of hours of gardening service per month)
FIGURE 5-5
Refer to Figure 5 - 5. Suppose this market for gardening services is in a free - market equilibrium. If the government then imposes a price floor of $50 per
hour for gardening services, the result would be
A. a loss of economic surplus of the area 1.
O B. a loss of economic surplus of the areas 6 and 7.
O C. a loss of economic surplus of the areas 2 and 6.
O D. a loss of economic surplus of the areas 2, 3, 4, 6, and 7.
O E. a loss of economic surplus of the areas 1, 2, 3, and 4.
Price ($s per hour)

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1 ECONOMIC SURPLUS

VIEW

Step 2 ANSWER

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

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.

Similar questions

PLABOR МIC $7.00 -S $5.25 $4.50 MVP QLABOR 1000 1500
None
11
None
The future value of 1000 Rand for 8% interest rate over 6 years is a certain value. At what interest rate will you get the same future value when you change the period to 3 years for the same 1000 Rand? Hint use goal seek
Ed opened a savings account 5 years ago with $600. The account earns 3% simple interest per year, and Ed has not added or withdrawn from the account. How much interest has Ed earned?
Given the following information for an insurance company that writes 24-month term policies: Number of Vehicles 50 100 Policy Group A B Effective Date January 1, 2010 Expiration Date December 31, 2011 July 1, 2010 June 30, 2012 All policies within each group have the same effective date. (a) Calculate the earned car-years for calendar year 2011. (b) Calculate the earned car-years for policy year 2010 evaluated as of December 31, 2010 and as of December 31, 2011. (c) Assume Policy Group B cancels on January 1, 2011. Calculate the 2010 policy year written car- years evaluated as of December 31, 2010 and as of December 31, 2011 for Policy Group B. (d) Assume Policy Group B cancels on July 1, 2011. Calculate the 2010 and 2011 calendar year written car-years for Policy Group B.