Refer to Table 5. Which of the following statements is correct? Select one: O a. A price floor set at $20 will not be binding. O b. A price floor set at $20 will be binding and will result in a surplus of 100 units. O c. A price floor set at $20 will be binding and will result in a surplus of 250 units. O d. A price floor set at $20 will be binding and will result in a surplus of 50 units.

Refer to Table 5. Which of the following statements is correct? Select one: O a. A price floor set at $20 will not be binding. O b. A price floor set at $20 will be binding and will result in a surplus of 100 units. O c. A price floor set at $20 will be binding and will result in a surplus of 250 units. O d. A price floor set at $20 will be binding and will result in a surplus of 50 units.

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 supplier was using labour for the production of clothes. But recently he purchased a new machine that will produce more clothes. By enmploying machines, the supplier was able supply more clothes to the market. Which of the following is explained in the above t of scenario? estion O a. Rightward shift of supplier on the supply curve O b. Leftward shift of supplier on the supply curve O c. Downward movement of supplier on the supply curve O d. Upward movement of the supplier on the supply curve Abdul is living in a country where he gets free education, free medical facilities. He is employed in the government service and he gets all the goods and services provided by the government. There are no private companies in his country. The country where Abdul lives is practicing ut of uestion O a. Capitalism O b. Command economy Market economy O d. Free economy
f 20 18 16 14 12 10 8 6 4 2 + Consumer 1 Demand 2 4 6 Figure 4-2 8 10 12 14 16 18 20 QUANTITY PRICE Refer to Figure 4-2. If these are the only two consumers in the market, then the market quantity demanded at a price of $15 is O a. 0 units. Ob. 15 units. O c. 25 units. Od. 10 units. 30 27 24 21 18 15 12 9 6 3 Consumer 2 Demand 5 10 15 20 25 30 35 40 45 50 QUANTITY
QUESTION 14 Which of the following would lead to a leftward shift of the supply curve? O a. Increase in input prices and decrease in demand for goods in joint supply O b. Decrease in input prices and increase in demand for goods in joint supply O c. Increase in input prices and decrease in demand for substitutes in supply O d. Decrease in input prices and decrease in demand for substitutes in supply
QUESTION 7 If a price ceiling is binding in a given market, the effect on supplier profits through price is: O indeterminate O increased decreased no effect QUESTION 8 If a price ceiling is binding in a given market, the effect O no effect O decreased increased O indeterminate nsumer welfare through the income effect of prices is:
QUESTION 1 When production of a good can be expanded without significantly increasing the overall demand for its inputs: O a.supply for this good will tend to be more inelastic. O b.supply for this good will tend to be more elastic. O c. price for the good will be constant. O d. the elasticity of supply of the product will equal the elasticity of supply of the inputs.
Figure 7-3 PRICE 20 16 15 21 8 6.5 2 3 QUANTITY Supply 5 Refer to Figure 7-3. If the price of the good is $13.50, then producer surplus is O a. $17.50 O b. $18.50. O c. $19.00. O d. $7.50
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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.
Air fares are generally lower on Tuesdays and Wednesdays each week. What is a likely explanation for this occurrence? O Supply is relatively variable, and lower demand on these days leads to a lower equilibrium price. O Demand is relatively variable, and lower supply leads to a lower equilibrium price. Lower levels of both supply and demand on these days lead to a lower equilibrium price. Supply is relatively fixed, and lower demand on these days leads to a lower equilibrium price. Demand is relatively fixed, and lower supply leads to a lower equilibrium price. OO
BB Hypermarket reduces the price of salt by 10% which results in zero (0) change in demand, the demand of salt is: O a. Unitary elastic demand O b. Perfectly elastic demand O c. Elastic demand O d. Perfectly inelastic demand Why principles of microeconomics are called as Price theory? O a. Microeconomic principles are required for determining output prices O b. Microeconomic principles are required for determining input prices O c. Microeconomic principles are required for determining the prices of inputs and output O d. Microeconomic principles are required for understanding the types of market structure