Suppose that in an attempt to boost the price of blueberries for its farmers, the government of Roni introduces a quota that limits the otal amount that farmers can sell to 250,000 kilos. What is the maximum price at which this quantity could be sold? Round your answer to 1 decimal place. $1 b) What would be the farmers' total revenue as a result of the quota?I $ c) What if this government decides, instead of using a quota, to introduce a price floor of $1.1 per kilo? What would be the surplus/shortage and the resulting total revenue of farmers? (Click to select) of and total revenue: $ < Prev 5 of 5 Next >

Suppose that in an attempt to boost the price of blueberries for its farmers, the government of Roni introduces a quota that limits the otal amount that farmers can sell to 250,000 kilos. What is the maximum price at which this quantity could be sold? Round your answer to 1 decimal place. $1 b) What would be the farmers' total revenue as a result of the quota?I $ c) What if this government decides, instead of using a quota, to introduce a price floor of $1.1 per kilo? What would be the surplus/shortage and the resulting total revenue of farmers? (Click to select) of and total revenue: $ < Prev 5 of 5 Next >

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Price (dollars per bagel) 3.50 3.00 2.50 + 2.00 1.50 1.00 0.50 + Quantity (bagels per day) ?The figure above illustrates the bagel market. Which of the following statements is correct اختر أحد الخيارات „a. With a price ceiling of $3.00 per bagel, the price of a bagel is $2 O .b. With a price ceiling of $1.00 per bagel, the price of a bagel is $1 .C. Only answers A and B are correct .d. Answers A, B, and C are correct O .e. With no government intervention, the equilibrium price of a bagel is $2 O
7. What would happen to world welfare if the United States paid exporters a subsidy of $5 for every pair of blue jeans they sold to Canada, but Canada charged a $5 countervailing duty on every pair imported into Canada? Would the United States gain from the combi- nation of the export subsidy and import tariff? Would Canada? Explain. (In your answer, assume that the blue jeans market is perfectly competitive.) 8. Consider the case
Price 14 9 8 6 4 Price 6 2 (a) Home Market 456 8 Quantity (b) Import Market 6 Show Transcribed Text Import Refer to the graphs. Suppose that instead of a tariff, Home applies an import quota limiting the amount Foreign can sell to 2 units. a. Determine the net effect of the import quota on the Home economy if the quota licenses are allocated to local producers. b.Calculate the net effect of the import quota on Home welfare if the quota rents are earned by Foreign exporters.
he market equilibrium price for lettuce is $2 per pound. The market equilibrium quantity for lettuce is 30,000 pounds of lettuce. The government decideds to impose a price floor of $3 per pound of lettuce. After the price floor is imposed, the quantity of lettuce supplied will be _____ 30,000 pounds and the quantity of lettuce demanded will be ______ 30,000. The price floor causes a ____ in the market for lettuce. greater than less than surplus equal to shortage
Suppose that market supply and demand for Cola are linear and continuous. At competitive equilibrium, the price of Cola is $9.09, with 10 people each buying half a litre in quantity. The government subsidises the consumption of Cola by $2.7 per litre, and in doing so, leads the market to a new equilibrium price of $7.74 and quantity of 17 litres.What is the deadweight loss of this policy?O a. $9.09O b. $8.50O c. $32.40O d. $16.20 Type out the correct answer and give correct explanation of it within 40 50 minutes. Will give upvote only for the correct answer. Thank you
57. A low-income country decides to set a price ceiling on bread so it can make sure that bread is affordable to the poor. Table 3.11 provides the conditions of demand and supply. What are the equilibrium price and equilibrium quantity before the price ceiling? What will the excess demand or the shortage (that is, quantity demanded minus quantity supplied) be if the price ceiling is set at $2.40? At $2.00? At $3.60? Price Qd Qs $1.60 9,000 5,000 $2.00 8,500 5,500 $2.40 8,000 6,400 $2.80 7,500 7,500 $3.20 7,000 9,000 $3.60 6,500 11,000 $4.00 6,000 15,000
What is meant by deadweight loss? Why does a price ceiling usually result in a deadweight loss? Deadweight loss is at OA. net loss in output; below OB. net loss of social surplus; below O C. net loss in output; above O D. net loss of social surplus; above A price ceiling results in a deadweight loss when the ceiling price is set the market clearing price.
It is an illegal market that emerges when binding and nonbinding price controls are in place. It is an illegal market that emerges when binding price ceilings are in place. O It is an illegal market that emerges when binding price floors are in place. It is an illegal market that emerges when only binding price ceilings and binding price floors are in place.. It is an illegal market that em erges when no price controls are present. Save Question 10 You would expect there to be many customers for a black market good when the opportunity cost of finding the good under a: O binding price floor is high. binding price floor is low. nonbinding price ceiling is high. binding price ceiling is low. binding price ceiling is high.
Suppose the government put into place a program where steel makers were given a subsidy based on the weight of nails produced. What would you expect to happen to the size and quantity of nails produced? Why? (Think about what the incentive is here.)
Suppose the world price of oil is $15 per barrel. At that price, the United States imports 400 million barrels daily and consumes 600 million barrels daily. The government then imposes a $5 per barrel tax on oil imports. For every dollar increase in oil prices, domestic consumption decreases by 20 million barrels per day, while domestic production increases by 40 million barrels per day. 3. What will be the cost of inefficient production, loss in consumer surplus, and deadweight loss? Use a diagram to help answer the question.
2. Price controls in the Florida orange market The following graph shows the annual market for Michigan blueberries, which are sold in units of 50-pound boxes. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. PRICE (Dollars per box) 50 22222222. 45 40 35 25 20 15 0 Supply Demand 50 100 150 200 250 300 350 400 450 500 QUANTITY (Millions of boxes) Graph Input Tool Market for Michigan Blueberries Price (Dollars per box) Quantity Demanded (Millions of boxes) 15 500 Quantity Supplied (Millions of boxes) 210
A low-income country decides to set a price ceilingon bread so it can make sure that bread is affordable tothe poor.Table 3.11 provides the conditions of demandand supply. What are the equilibrium price andequilibrium quantity before the price ceiling? What willthe excess demand or the shortage (that is, quantitydemanded minus quantity supplied) be if the priceceiling is set at $2.40? At $2.00? At $3.60?