Suppose demand and supply are given by Qd = 40 - P and Qs = 1.0P - 20. a. What are the equilibrium quantity and price in this market? Equilibrium quantity: 10 Equilibrium price: $ 30 b. Determine the quantity demanded, the quantity supplied, and the magnitude of the surplus if a price floor of $34 is imposed in this market. Quantity demanded: 6 Quantity supplied: 14 Surplus: 8 c. Determine the quantity demanded, the quantity supplied, and the magnitude of the shortage if a price ceiling of S24 is imposed in the market. Also, determine the full economic price paid by consumers. Quantity demanded: 16 Quantity supplied: 4 Shortage: 12 Full economic price: S

Suppose demand and supply are given by Qd = 60 - P and Qs  = 1.0P - 10.a. What are the equilibrium quantity and price in this market?Equilibrium quantity: Equilibrium price: $ b. Determine the quantity demanded, the quantity supplied, and the magnitude of the surplus if a price floor of $50 is imposed in this market.Quantity demanded: Quantity supplied: Surplus: c. Determine the quantity demanded, the quantity supplied, and the magnitude of the shortage if a price ceiling of $30 is imposed in the market. Also, determine the full economic price paid by consumers.Quantity demanded: Quantity supplied: Shortage: Full economic price: $

2) Consider the following demand Qd = 140 - 3P and supply QS = 20 +20P for lunch at the Mountain View Golf and Country Club. a) Draw the demand and supply curves, and calculate the equilibrium price and quantity. b) The provincial government has imposed a sales tax of 12 percent on restaurant meals. Show how the above market is affected, and the new equilibrium price and quantity. (calculation is necessary). c) Explain and illustrate how the consumer's welfare is affected. Specifically show how the (1) consumer surplus, (2) total value, and (3) marginal value change.

Suppose that the market for milk can be represented by the following equations:   Demand: P = 12 – 0.5QD   Supply: P = 0.1QS where P is the price per gallon, and Q represents quantity of milk, represented in millions of gallons of milk consumed per day. a) Calculate the equilibrium price and quantity of milk.   b) To help dairy farmers, the government sets a minimum price of K2.50 per gallon of milk. What is the new quantity of milk sold in the marketplace?

If the supply and demand for a product both decrease then equilirium quantity and equilibrium price must both A decline. quantity and equilibrium price must both В increase. price must fall, but equilibrium quantity C) may either rise, fall, or remain unchanged. quantity must decline, but equilibrium D) price may either rise, fall, or remain unchanged. quantity must fall and equilibrium price E must rise.

Suppose that in the absence of any tax whatsoever, the equilibrium price of beer is €1.50 per pint. Now suppose that the government requires beer drinkers to pay a total tax (sales tax plus alcohol duty) of €0.50 on every pint of beer purchased. a) Draw a supply-and-demand diagram of the market for beer without the tax. Show the price paid by consumers, the price received by producers, and the quantity of beer sold. What is the difference between the price paid by consumers and the price received by producers?b)Now draw a supply-and-demand diagram for the beer market with the tax. Show the price paid by consumers, the price received by producers, and the quantity of beer sold. What is the difference between the price paid by consumers and the price received by producers? Has the quantity of beer sold increased or decreased?

Price per unit ($) The diagram to the right is a basic supply and demand graph. Economists use it to analyze equilibrium price and quantity in a market. 10 00 When price equals $8, a surplus occurs. 9.00- 1.) Using the line drawing tool, draw a horizontal line from the $8 value on the vertical axis to represent the surplus Label this line 8.00- "Price 7.00- 2) Using the point drawing tool, locate quantity demanded (label the point P,) and quantity supplied (label the point P,) at this price of $8 6.00- Carefully follow the instructions above and only draw the required objects. 5.00 4.00- 3.00- 2.00 1.00- onal 0.00- 10 70 80 Quantity per unit of time 20 30 40 50 60 90 100

1. Which of the following will result in an uncertainty regarding any change that might occur in the equilibrium quantity but a definite increase in the equilibrium price? a) An increase in demand and a decrease in supply b) A decrease in demand and a decrease in supply c) A decrease in demand and an increase in supply d) An increase in demand and an increase in supply 2. In a production possibility frontier (PPF) graph it is observed that points 1,2,3, and 4 lie on the PPF, Point 5 is outside the PPF, and point 6 is inside the PPF. Which of the following statements is correct? a) Point 6 can be produced only if there is an increase in resource availability and/or an improvement in technology. b) Points 1-4 and 6 can be produced with the currently available resources and technology, but resources are used efficiently only at points 1-4. c) Point 5 can be produced with the currently available resources and technology, but the resource use is inefficient. d) Point 6 can be produced with…

Suppose that the market for milk can be represented by the following equation: Demand: P=12-0.5Qd Supply: P=0.1Qs Where P is the price per gallon and Q represents quantity of milk, represented in millions of gallons of milk consumed per day. Calculate the equilibrium price and quantity of milk. To help dairy farmers the government sets a minimum price of $2.50 per gallon of milk. What is the new quantity of milk sold in the market? Illustrate your answers to a and b on a graph, using this graph, calculate how the consumer surplus and producer surplus change after the price support are enacted. Also calculate any dead weight loss that results

Suppose demand and supply are given by Qd = 60 − P and Qs = 1.0P − 20.a. What are the equilibrium quantity and price in this market?Equilibrium quantity: Equilibrium price: $ b. Determine the quantity demanded, the quantity supplied, and the magnitude of the surplus if a price floor of $50 is imposed in this market.Quantity demanded: Quantity supplied: Surplus: c. Determine the quantity demanded, the quantity supplied, and the magnitude of the shortage if a price ceiling of $32 is imposed in the market. Also, determine the full economic price paid by consumers.Quantity demanded: Quantity supplied: Shortage: Full economic price: