Question 22Refer to the accompanying figure. If the government has a budget of $300,000 to purchase surplusshampoo, what is the maximum possible floor price that could be imposed?PriceS.428,000 15,000 25.000 75.000/100.000 125.000 175.000 Quantity47,000 90,000$5$4$2$1$33.

In order for the Price floor to be binding, it has to be above the equilibrium price of 2…

Answered: Refer to the accompanying figure. If…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Grilled cheese sandwiches are $4, and the quantity demanded is 60. When the price falls to $3/sandwich, the quantity demanded rises to 80. What is the price elasticity of grilled cheese sandwiches? Widgets are $3, and the quantity demanded is 200. When the price of widgets rises to $5, the quantity demanded falls to 100. What is the price elasticity of demand for widgets? Coffee is $1 per cup, and the quantity demanded is 500. The price of coffee rises to $1.25 per cup, and the quantity demanded falls to 400. What is the price elasticity of demand for cups of coffee?
In the market for therbligs, the supply curve is Ps=$10+$0.05Qs and whose market demand curve is Pd=$20-$0.10Qd . Find the quantity and price in equilibrium and record them using fractions rather than a rounded decimal. Calculate the elasticity of demand on the interval between the market equilibrium point and the point at which P=$15. Plot the diagram on graph paper and add in a price floor at $15. Show the resulting Cunsumer Surplus, Producer Surplus, and DeadWeight Loss. A quick way to calculate price elasticity at a point on a straight demand or supply curve is to remember the forula of elasticity.At the equilibrium price and quantity, calculate the elasticities of demand and supply. (Your answer for demand will be smaller than in #2.) If an excise tax is imposed on therbligs, what fraction of that tax will be borne by therblig sellers?
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Suppose the demand for Dolce & Gabbana designer jeans increased from 42 000 to 56 000 when per-capita incomes rose from $65 000 to $71 500. Calculate the income elasticity of demand coefficient (remember to use the midpoint method). Are Dolce & Gabbana designer jeans considered a normal or inferior good? Explain why. Are the jeans considered a luxury or necessity? Explain why
The following graph gives two points (A and B) along a hypothetical demand curve for tofu. PRICE (Dollars per pound) 12 11 10 9 8 5 3 2 1 0 0 I 10 B A Demand 20 30 40 50 60 70 80 90 100 110 QUANTITY (Thousands of pounds of tofu) ? Using the midpoint method, the price elasticity of demand for tofu between point A and point B is approximately tofu is between points A and B. This indicates that demand for
For the demand schedule shown below, what is the price elasticity of demand? Price Quantity Demanded $74 2,500 $80 1,800
Which of the following best explains why the supply of housing in Detroit is much less elastic than in other cities? The automotive industry's dominance of the economy in Detroit discourages building homes in the city, even if prices rise People find Detroit to be an undesirable place to live and wouldn't invest in houses in Detroit, even if pices rise The high number of vacant houses in Detroit discourages builders from constructing new homes, even if prices rise There is a fixed amount of land in Detroit, which limits the number of new houses that can be built if prices rise
Calculate the producers' surplus (in dollars) for the supply equation at the indicated unit price p. (Round your answer to the nearest cent.) p = 7 + 2g p = 20 ,1/3.
Economists in Champaign have been studying the local market for pizza. The market is described in the graph below: What is the price elasticity of demand(in absolute value) when the price changes from $7 to $5?(Round your answer to include 2 decimal places.)
Fill out the tables by calculating the price elasticity of demand and of supply (use the mid-point formula). Report elasticities with 2 decimals. Demand and Supply Schedule for Good X: Unit price of x Quantity demanded of x Quantity supplied of x Price elasticity of demand of x (2 decimals) Price elasticity of supply of x (2 decimals) $100 0 5 n/a n/a $95 2 4.5 $90 4 4 $85 6 3.5 $80 8 3 $75 10 2.5 $70 12 2 $65 14 1.5 $60 16 1 $55 18 0.5 Demand and Supply Schedule for Good Y: Unit price of y Quantity demanded of y Quantity supplied of y Price elasticity of demand of y (2 decimals) Price elasticity of supply of y (2 decimals) $100 10 40 n/a n/a $90 11 35 $80 12 30 $70 13 25 $60 14 20 $50 15 15 $40 16 10…
Respond to the following in a minimum of 175 words: Compare and contrast the price elasticity of supply and price elasticity of demand. Define income elasticity and how it distinguishes normal and inferior goods. How do you think income elasticity affects a normal good versus an inferior good? Provide a real-world example.

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Refer to the accompanying figure. If the government has a budget of $300,000 to purchase surplus shampoo, what is the maximum possible floor price that could be imposed? Price 3