Use the accompanying graph to answer these questions. S¹ so 20 18 16 14 12 10 Price of X ($) 8 6 4 2 0 1 2 3 4 Quantity of Good X units 5 6 D a. Suppose demand is D and supply is SO. If a price ceiling of $6 is imposed, what are the resulting shortage and full economic price? Shortage: Full economic price: $ b. Suppose demand is D and supply is SO. If a price floor of $12 is imposed, what is the resulting surplus? What is the cost to the government of purchasing any and all unsold units? Surplus: Cost to government: $ c. Suppose demand is D and supply is SO so that equilibrium price is $10. If an excise tax of $6 is imposed on this product, what happens to the equilibrium price paid by consumers? The price received by producers? The number of units sold? Fquilibrium price paid by consumers $1

Use the accompanying graph to answer these questions. S¹ so 20 18 16 14 12 10 Price of X ($) 8 6 4 2 0 1 2 3 4 Quantity of Good X units 5 6 D a. Suppose demand is D and supply is SO. If a price ceiling of $6 is imposed, what are the resulting shortage and full economic price? Shortage: Full economic price: $ b. Suppose demand is D and supply is SO. If a price floor of $12 is imposed, what is the resulting surplus? What is the cost to the government of purchasing any and all unsold units? Surplus: Cost to government: $ c. Suppose demand is D and supply is SO so that equilibrium price is $10. If an excise tax of $6 is imposed on this product, what happens to the equilibrium price paid by consumers? The price received by producers? The number of units sold? Fquilibrium price paid by consumers $1

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Problem 02-06 (algo) Suppose demand and supply are given by Qd = 60 - Pand 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 $52 is imposed in this market. Quantity demanded: Quantity supplied: Surplus: 20 Quantity demanded: Quantity supplied: Shortage: Full economic price: $ 40 C. Determine the quantity demanded, the quantity supplied, and the magnitude of the shortage if a price ceiling of $35 is imposed in the market. Also, determine the full economic price paid by consumers.
im pretty sure i need some tyoe of graph
25. Assume the following information for the demand and supply curves for good Z. Price $10 9 8 7 6 5 4 3 2 1 Demand Quantity Demanded 10 20 30 40 50 60 70 80 90 100 Price $ 1 2 3 4 5 6 7 8 9 10 Supply Quantity Supplied 10 15 20 25 30 35 40 45 50 55 a. Draw the corresponding supply and demand curves. b. What are the equilibrium price and quantity traded? c. Would a price of $9 result in a shortage or a surplus? How large? d. Would a price of $3 result in a shortage or a surplus? How large? e. If the demand for Z increased by 15 units at every price, what would the new equilibrium price and quantity traded be? f. Given the original demand for Z, if the supply of Z were increased by 15 units at every price, what would the new equilibrium price and quantity traded be?
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Suppose that initially, the gasoline market is in equilibrium. War in the Middle East disrupts imports of oil into the United States shifting the supply curve to S2. The price of gasoline begins to rise, and consumers protest. The government intervenes and sets a price ceiling of $3 per gallon. Use the graph below to answer questions What are the original equilibrium price and quantity? What is the equilibrium price and quantity after the Middle East war begins (S2)? If the price ceiling is imposed, what will occur? A surplus or shortage? Suppose that initially, the gasoline market is in equilibrium. War in the Middle East disrupts imports of oil into the United States shifting the supply curve to S2. The price of gasoline begins to rise, and consumers protest. The government intervenes and sets a price ceiling of $3 per gallon. Use the graph below to answer questions 2a – 2d. How are suppliers affected?
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Times New BIUA 12 ... Identify three factors that could shift D0 to D1 or D0 to D2. I Using the graph above, answer the following questions: What is happening to the supply curve? • Identify three factors that could shift the supply curve from S to S1 • What is happening to equilibrium price and quantity? 7. With regards to price ceilings and price floors: To be effective, does government set a price ceiling above or below the market Page 3 of 5
b. Set a price ceiling at $1000.00 per unit of rental housing and describe the results. 3. Below are the equations for the quantity demanded and quantity supplied for a given market. Using the equations please find the equilibrium price quantity. Remember, at equilibrium Q₁ = Q₂. 40 – 4P = Qa 10+ 6P = Q₂ dal with P on the vertical and Q on the horizontal
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Suppose the total demand for wheat and the total supply of wheat per month in the Kansas City grain market are as shown below: Graph the demand for wheat and the supply of wheat. Be sure to label the axes of your graph correctly. Label equilibrium price P and equilibrium quantity Q.
Find the equilibrium price and quantity for a product that has the following supply and demand curves, where p is the price in 100's of dollars and q is quantities in 1,000's of units demand: 1/3q + 1/3p - 4=0 Supply: q-p-2=0 If the product is currently priced at $400, what is the quantity supplied and the quantity demanded? Is there a surplus (More supplied than demanded) or a shortage (More demanded than supplied)
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