Suppose that policy makers are concerned that the price ofcorn may get too low. The market for corn is depicted in theaccompanying diagram.a. What type of price control would policy makers use tokeep the price of corn from getting too low?O a price floora price ceilinga price markera price warO a price wallb. Suppose that the government implements the pricecontrol that you have selected. Which of these priceswould be binding?10987Price ($) 65430201SupplyDemand23 4 5 678Quantity (in thousands of kilograms)910

[Note: Since, MCQ b is not fully visible, we'll answer MCQ a only. To get the answer to MCQ b,…

Suppose that policy makers are concerned that the price of corn may get too low. The market for corn is depicted in the accompanying diagram. a. What type of price control would policy makers use to keep the price of corn from getting too low? O a price floor O a price ceiling O a price marker a price war a price wall 10 9 8 7 Price ($) 6 5 4 3 2 1 0 1 2 Supply Demand 3 4 5 6 7 8 9 Quantity (in thousands of kilograms) 10

Suppose that policy makers are concerned that the price of corn may get too low. The market for corn is depicted in the accompanying diagram. a. What type of price control would policy makers use to keep the price of corn from getting too low? O a price floor O a price ceiling O a price marker a price war a price wall 10 9 8 7 Price ($) 6 5 4 3 2 1 0 1 2 Supply Demand 3 4 5 6 7 8 9 Quantity (in thousands of kilograms) 10

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 black market is O A. a market in which buying and selling occur at prices that violate government price regulations. O B. a market in which participants exchange goods and services without using money. OC. a market in which there is no deadweight loss. O D. a market in which buying and selling occur at legal prices. O E. a market in which there are non-binding price controls.
Refer to the above table. If the government implemented a price control at $20 which of the following is true?
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
macro question 2
4. For the last 80 years the U.S. government has used price supports to provide income assistance to American farmers. To implement these price supports, at times the government has used price floors, which it maintains by buying up the surplus farm products. At other times, it has used target prices, a policy by which the gives the farmer an amount equal to the difference between the market price and the target price for each unit sold. Consider the market for corn depicted in the accompanying diagram. a. If the government sets a price floor of $5 per bushel, how many bushels of corn are produced? How many are purchased by consumers? By the government? How much does the program cost the government? How much revenue do corn farmers receive? b. Suppose the government sets a target price of $5 per bushel for any quantity supplied up to 1,000 bushels. How many bushels of corn are purchased by consumers and at what price? By the government? How much does the program cost the government?…
500 600 100 Quantity (millions of gollons per year) 200 300 400 The figure above shows the market for milk in Cowland. If a subsidy paid to producers of $1 per gallon of milk is introduced, what is the amount, including the subsidy, that suppliers keep per gallon? Select one: O a. $3.00 a gallon O b. between $3.00 and $4.00 per gallon Oc. $4.00 a gallon O d. between $4.00 and $5.00 per gallon Price (dollars per gallon)
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?