Why do shortages develop under a binding price ceiling? a) O a) A ceiling makes the price so low that the quantity demanded exceeds the quantity supplied on the black market. Ob) A ceiling makes the price so low that the quantity demanded exceeds the quantity supplied in the legal market. O A ceiling encourages sellers to increase the quality of the products they sell, which in turn increases the quantity demanded. Od) A ceiling encourages buyers to purchase less of the product. Oe) A ceiling encourages sellers to produce more of the product.

Why do shortages develop under a binding price ceiling? a) O a) A ceiling makes the price so low that the quantity demanded exceeds the quantity supplied on the black market. Ob) A ceiling makes the price so low that the quantity demanded exceeds the quantity supplied in the legal market. O A ceiling encourages sellers to increase the quality of the products they sell, which in turn increases the quantity demanded. Od) A ceiling encourages buyers to purchase less of the product. Oe) A ceiling encourages sellers to produce more of the product.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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18- 18 14+ 10 Supply a) What is the equilibrium price and quantity? Demand 6 8 10 12 14 16 18 20 Quantity b) Suppose the government imposes a price floor at $16. Is this a binding/non-binging price floor? How much surplus/shortage is generated in the market? c) Suppose the government imposes a price calling at $16. Is this a binding/non-binding price celling? is there a shortage or a surplus generated in the market? How much surplus/shortage is generated in the market?
How would each event affect the market for COVID-19 vaccines? Does the event cause a change in demand or a change in the quantity demanded? Is the change positive or negative? Or does the event cause a change in supply or a change in the quantity supplied? Is the change positive or negative? Explain the mechanism for the change and what happens to equilibrium price and quantity. a) The vaccine is approved for children under the age of 12. b) The U.S. government provides a subsidy that allows the price of the vaccine to be $0 for everyone. c) Several vaccines pass Phase 3 (large-scale efficacy tests) and are approved by the FDA for full use. d) A truck carrying the Pfizer vaccine has a malfunction and the refrigeration requirements aren’t met, so all the doses go bad. e) School districts and health care facilities add a requirement for getting the vaccine for all employees.
Refer to Table 4-1. Suppose that D1 and S1 are the prevailing demand and supply curves for a product. If the demand schedule changes from D1 Price $12 $10 $8 $6 $4 $2 Table 4-1 D1 5 8 11 13 16 18 2925622 D2 12 15 18 21 24 S1 19 17 15 13 11 9 S2 14 12 10 8 6 4 equilibrium price decreases from $6 to $4. O equilibrium quantity decreases from 15 to 13. O equilibrium quantity increases from 13 to 18. O equilibrium price increases from $6 to $8 4
In 2020 the Malaysian federal government-imposed price controls on face masks. Face mask ceiling price set at 70 cents from Nov 1, 2020 (Source: The Star: 27 Oct 2020). Which of the following statements is true? O a. This policy was unusual because it resulted in no deadweight loss to society. O b. The producers gained from this policy because producer surplus was larger than it would have been under free market equilibrium. O C. The consumers gained from this policy becoause consumer surplus was larger than it would have been under free market equilibrium. O d. The price controls will cause a chronic excess supply of face moasks.
Do both otherwise I will give down vote surely
20 18- 16 14+ 12 10 8+ Price Supply N 10 12 14 16 18 20 Quantity a) What is the equilibrium price and quantity? Demand b) Suppose the government imposes a price floor at $16. Is this a binding/non-binging price floor? How much surplus/shortage is generated in the market? c) Suppose the government imposes a price ceiling at $16. Is this a binding/non-binding price ceiling? Is there a shortage or a surplus generated in the market? How much surplus/shortage is generated in the market?
QUESTION 7 If a price ceiling is binding in a given market, the effect on supplier profits through price is: O indeterminate O increased decreased no effect QUESTION 8 If a price ceiling is binding in a given market, the effect O no effect O decreased increased O indeterminate nsumer welfare through the income effect of prices is:
5. Consider the price-supply function p= S(x) = 5+ 0.1x. (a) Find the equilibrium quantity a if the producers' surplus at ī is 500 pesos. (b) Find the corresponding equilibrium price, p. (c) If p = D(x) = ax² + b is the price-demand equation, find the values of 2000 a and b so that the consumers' surplus at the equilibrium point is 3 pesos.
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In Figure below, using the supply and demand curves denoted S1 and D1, respectively, Price $150 $100 $75- $50 1 I 50 75 100 O surplus Quantity (thousands) if demand were to increase to D2 and the equilibrium price stayed the same there would be shortage new equilibrium at 75,000 new equilibrium at 100,000 D₂ new equilibrium at 50,000
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