Anna is separated from her boyfriend, John, while she studies economics and he goes to art school. The government thinks that Flash Telecommunications, Anna's phone company, needs subsidization, so a price floor is instituted at $16 per minute. Price Quantity Supplied per Month Quantity Demanded per Month 8 24 per Minute $18 2 32 16 Use the data in the table above to draw the linear supply and demand curves and show the effect of a price floor. 1.) Using the line drawing tool, draw Anna's demand curve and the supply curve she faces. Properly label both lines. 2.) Using the line drawing tool, draw the price floor at a price of $16. Label the line 'Floor'. 3.) Using the point drawing tool, indicate the quantity demanded at the price floor. Label the point 'P₁'. 4.) Using the point drawing tool, indicate the quantity supplied at the price floor. Label the point 'P₂'. Carefully follow the instructions above and only draw the required objects. The amount of the surplus is equal to the quantity supplied at a price of $16 minus the quantity demanded at $16. The amount of excess supply is 20- 18- 16- 14- 12- 10- 8- 6- 4- 2- Market for Telephone Calls Price per minute ($) 0 4 8 12 16 20 24 28 32 36 40 Quantity per month ☑ Through October 2014, the U.S. government administered two programs that affected the market for cigarettes. Media campaigns and labeling requirements, which are still in place, aim at making the public aware of the health dangers of cigarettes, and until 2014 the Department of Agriculture also maintained price supports for tobacco. Under this program, the supported price was above the market equilibrium price and the government limited the amount of land that could be devoted to tobacco production. Were these two programs at odds with the goal of reducing cigarette consumption? 1.) Using the line drawing tool, draw the effective price support in the market for cigarettes before the media campaigns and labeling requirements produced an effect. Label this 'Support'. 2.) Using the line drawing tool, illustrate the effect of the media campaigns and labeling requirements on the market for cigarettes. Properly label this line. Carefully follow the instructions above and only draw the required objects. C Price ($) Market for Cigarettes Scigarettes Quantity Dcigarettes Q ☑
Anna is separated from her boyfriend, John, while she studies economics and he goes to art school. The government thinks that Flash Telecommunications, Anna's phone company, needs subsidization, so a price floor is instituted at $16 per minute. Price Quantity Supplied per Month Quantity Demanded per Month 8 24 per Minute $18 2 32 16 Use the data in the table above to draw the linear supply and demand curves and show the effect of a price floor. 1.) Using the line drawing tool, draw Anna's demand curve and the supply curve she faces. Properly label both lines. 2.) Using the line drawing tool, draw the price floor at a price of $16. Label the line 'Floor'. 3.) Using the point drawing tool, indicate the quantity demanded at the price floor. Label the point 'P₁'. 4.) Using the point drawing tool, indicate the quantity supplied at the price floor. Label the point 'P₂'. Carefully follow the instructions above and only draw the required objects. The amount of the surplus is equal to the quantity supplied at a price of $16 minus the quantity demanded at $16. The amount of excess supply is 20- 18- 16- 14- 12- 10- 8- 6- 4- 2- Market for Telephone Calls Price per minute ($) 0 4 8 12 16 20 24 28 32 36 40 Quantity per month ☑ Through October 2014, the U.S. government administered two programs that affected the market for cigarettes. Media campaigns and labeling requirements, which are still in place, aim at making the public aware of the health dangers of cigarettes, and until 2014 the Department of Agriculture also maintained price supports for tobacco. Under this program, the supported price was above the market equilibrium price and the government limited the amount of land that could be devoted to tobacco production. Were these two programs at odds with the goal of reducing cigarette consumption? 1.) Using the line drawing tool, draw the effective price support in the market for cigarettes before the media campaigns and labeling requirements produced an effect. Label this 'Support'. 2.) Using the line drawing tool, illustrate the effect of the media campaigns and labeling requirements on the market for cigarettes. Properly label this line. Carefully follow the instructions above and only draw the required objects. C Price ($) Market for Cigarettes Scigarettes Quantity Dcigarettes Q ☑
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter4: Markets In Action
Section4.2: Can The Laws Of Supply And Demand Be Repealed?
Problem 3YTE
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everything is in image (8 and 10)
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Transcribed Image Text:Anna is separated from her boyfriend, John, while she studies economics and he goes to art school. The
government thinks that Flash Telecommunications, Anna's phone company, needs subsidization, so a
price floor is instituted at $16 per minute.
Price
Quantity
Supplied per
Month
Quantity
Demanded per Month
8
24
per Minute
$18
2
32
16
Use the data in the table above to draw the linear supply and demand curves and show the effect of a
price floor.
1.) Using the line drawing tool, draw Anna's demand curve and the supply curve she faces. Properly
label both lines.
2.) Using the line drawing tool, draw the price floor at a price of $16. Label the line 'Floor'.
3.) Using the point drawing tool, indicate the quantity demanded at the price floor. Label the point 'P₁'.
4.) Using the point drawing tool, indicate the quantity supplied at the price floor. Label the point 'P₂'.
Carefully follow the instructions above and only draw the required objects.
The amount of the surplus is equal to the quantity supplied at a price of $16 minus the quantity
demanded at $16.
The amount of excess supply is
20-
18-
16-
14-
12-
10-
8-
6-
4-
2-
Market for Telephone Calls
Price per minute ($)
0
4
8
12 16 20 24 28 32 36 40
Quantity per month
☑
Transcribed Image Text:Through October 2014, the U.S. government administered two programs that affected the market for
cigarettes. Media campaigns and labeling requirements, which are still in place, aim at making the public
aware of the health dangers of cigarettes, and until 2014 the Department of Agriculture also maintained
price supports for tobacco. Under this program, the supported price was above the market equilibrium
price and the government limited the amount of land that could be devoted to tobacco production.
Were these two programs at odds with the goal of reducing cigarette consumption?
1.) Using the line drawing tool, draw the effective price support in the market for cigarettes before the
media campaigns and labeling requirements produced an effect. Label this 'Support'.
2.) Using the line drawing tool, illustrate the effect of the media campaigns and labeling requirements on
the market for cigarettes. Properly label this line.
Carefully follow the instructions above and only draw the required objects.
C
Price ($)
Market for Cigarettes
Scigarettes
Quantity
Dcigarettes
Q
☑
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