The table shows the demand and supply schedules for hay before and during a major drought. During the drought, suppose the government gave all farmers an equal quantity of hay. Resale of hay is not permitted. W A. maximized; rises OB. maximized; falls OC. maximized; does not change OD. less than the maximum possible; falls O E. less than the maximum possible; rises Suppose the government buys more than the equilibrium quantity of hay and pays the supply price for this quantity. Total surplus purchased, and the price of a bale @ # 73 compared to the total surplus when the equilibrium quantity is compared to the equilibrium price. OA. increases; rises OB. decreases; rises OC. decreases; falls OD. increases; falls OE. remains unchanged; remains unchanged e ... с $ 4 7 % 5 O t Oll ^ 6 y & 07 7 Price (dollars per before drought bale) (thou 0 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 U * Quantity demanded 8 0 40 35 30 25 20 15 10 5 0 6

The table shows the demand and supply schedules for hay before and during a major drought. During the drought, suppose the government gave all farmers an equal quantity of hay. Resale of hay is not permitted. W A. maximized; rises OB. maximized; falls OC. maximized; does not change OD. less than the maximum possible; falls O E. less than the maximum possible; rises Suppose the government buys more than the equilibrium quantity of hay and pays the supply price for this quantity. Total surplus purchased, and the price of a bale @ # 73 compared to the total surplus when the equilibrium quantity is compared to the equilibrium price. OA. increases; rises OB. decreases; rises OC. decreases; falls OD. increases; falls OE. remains unchanged; remains unchanged e ... с $ 4 7 % 5 O t Oll ^ 6 y & 07 7 Price (dollars per before drought bale) (thou 0 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 U * Quantity demanded 8 0 40 35 30 25 20 15 10 5 0 6

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Which is correct answer? quicky
A D A 3 Price (dollars per pizza) $406 30 20 0 Figure 4.4.3 50 P HE Reset Selection 100 Refer to Figure 4.4.3 above. When the price of pizza is $30, total expenditure and consumer surplus are, respectively: OA. $1500; $500. 4 OB. $1000; $1000. OC. $1500; $250. D. $1000; $500. D B DI Quantity of pizzas per week 22:01 2020/11/24
Consider Figure 1. Which of the following statements is correct? Figure 1 Y U2 U;\ Uo Y2 Y1 Yo X, X1 X2 X x and y are both Giffen goods Ob. x is a Giffen good and y is a normal good Oc x is a Giffen good and y is an inferior good Oa x is a normal good and y is a Giffen good C. Oe x and y are both normal goods Of x is a normal good and y is an inferior good a x is an inferior good and y is a Giffen good Oh. x is an inferior good and y is a normal good x and y are both inferior goods Oi.
Market for Gasoline Price SI Pel DI Qel Quantity 9. Fewer COVID restrictions lead to more vacation and work travel by car. a. Shift only one curve on the graph and label the new curve ( b. Surplus or Shortage immediately after the change in demand or change in supply? ( c. Label the surplus or shortage distance on the graph. d. Locate all new points (E2, Pe2, Qe2) on the graph. e. Pe2? f. Qe? Draw new curve and label as required. Write surplus or shortage in the required space and show this distance on graph. Label all new points on graph as required. Write "increases, "decreases," or "indeterminate" next to Pe2? and Qe2? above. If one of these values is indeterminate, indicate this on the graph by addition a "?" to the appropriate label.
What happens when the government begins charging a per-unit tax on a previously untaxed good? OA. The quantity sold increases. OB. The quantity supplied increases. OC. The quantity sold decreases. OD. The quantity demanded decreases. ← PREVIOUS SUBMIT
9. Any situation where quantity supplied does not equal quantity demanded indicates:a. a market equilibrium.b. a situation in which the actions of buyers do not match the actions ofsellers.c. a place where the laws of supply and demand do not hold.d. a point where quantity demanded is equal to quantity supplied. 10. Demand is said to be elastic ifa. the price of the good responds substantially to changes in demand.b. demand shifts substantially when income or the expected future price of the goodchanges. buyers do not respond much to changes in the price of the good.c. buyers respond substantially to changes in the price of the good.d. the price of the good responds only slightly to changes in demand. 11. Demand is said to be inelastic ifa. buyers respond substantially to changes in the price of the good.b. demand shifts only slightly when the price of the good changes.c. the quantity demanded changes only slightly when the price of the goodchanges.d. the price of the good responds…
In supply and demand theory, an increase in consumer income will: A. Shift the demand curve for a normal good in and to the left, lowering the equilibrium price but raising the equilibrium quantity. OB. Shift the supply curve out and to the right, lowering the equilibrium price but raising the equilibrium quantity. OC. Shift the demand curve for a normal good out and to the right, raising the equilibrium price and quantity. D. Shift the demand curve for a normal good out and to the right, lowering the equilibrium price but raising the equilibrium quantity. OE. Shift the supply curve in and to the left, lowering the equilibrium price and quantity. Moving to the next
If the price of a product is below the equilibrium price, the result will be A. A shortage of the good. B. A surplus of the good. C. A decrease in the supply of the good. D. An increase in the demand of the good.
What is consumer surplus? Consumer surplus is the OA. price; its marginal benefit B. price; its value of a good in excess of OC. marginal benefit; the price paid for it D. value; its marginal benefit Question 1 of 27 > summed over the quantity bought. Suppose that the price of a cashmere sweater is $100 and Jean's marginal benefit from a cashmere sweater is $300. If Jean buys 1 cashmere sweater, what is her consumer surplus? Jean's consumer surplus is $
Producers are willing to increase production athigher prices to increase profit.Select one:O a. FalseO b. True
Answer all questions in attachments.
A controversial issue in managing climate change is the effect of taxes on gasoline. Higher taxes would reduce the after-tax price received by gasoline producers. The price elasticity of the supply of gasoline has been estimated to be 2.0.a. Explain why the price elasticity of supply is positive.b. Suppose that a tax on gasoline reduces the after-tax price of gasoline by 5%. By how much would suppliers reduce gasoline production?c. Compare the effect of the tax on gasoline in the short vis-à-vis long run.