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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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 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
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.
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The figure on the right shows that for the 8,000th ticket, the marginal benefit is and the consumer surplus is Price (dollars per ticket) 140 O A. $70; $40 120 O B. $150,000; $40 C. $60; $20 O D. $60; $150,000 O E. $40; $60 100 Market price 80 60 40 20 :D 0 2 4 6 8 10 12 14 16
Which one of the following statement is incorrect? O A. The difference between the lowest price at which producers are willing to supply a product and the price they actually receive is known as the producer surplus O B. The producer surplus is depicted by the area below the demand curve and above the market price. O C. The value between what consumers pay and the maximum value that they are willing to pay for a product is known as the consumer surplus O D. To determine consumer surplus, one must have knowledge of the market price of a particular product
Quantity Demanded 6 7 8 9 10 11 12 Price $8 7 6 5 4 3 2 Refer to the above table. If demand decreased by 4 units at each price and supply decreased by 2 units at each price, what would the new equilibrium price and quantity be? Multiple Choice O $6 and 6 units $5 and 5 units O $4 and 6 units Quantity Supplied 10 9 8 7 6 5 4 $7 and 7 units
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P1 P2 f- X The US government has established a minimum wage (price floor). Where on the graph above would you find this restriction in relation to equilibrium and how would it affect the market? O P1 and it would create a surplus of workers O P1 and it would create a shortage of workers O P2 and it would create a surplus of workers O P2 and it would create a shortage of workers