Economics For Today
10th Edition
ISBN: 9781337613040
Author: Tucker
Publisher: Cengage Learning
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Question
Chapter 4, Problem 5SQ
To determine
The cost imposed on the consumer other than the consumer of a good.
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Click on the icon to read the news clip, then answer the following questions.
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The graph shows the market for milk in Venezuela when a price control is in effect.
Draw a shape that represents:
1) consumer surplus. Label it CS.
2) producer surplus. Label it PS.
3) the deadweight loss. Label it DWL.
Also draw a shape that show the resources lost from time spend in line. Label it
Loss.
Moving from a milk market with no price controls to a milk with price controls
consumer surplus and
producer surplus.
OA. increases; decreases
OB. decreases; increases
Oc. increases; increases
OD. decreases; decreases
In the market for cheese,
OA. the price is below the market equilibrium
9
O
60-
50-
40-
30-
20-
Price (bolivars per gallon)
10+
0
40
$
100
Price
control
300
200 300 400 500 600 700
Quantity (gallons of milk)
>>> Draw only the objects specified in the question.
D
Next
Click on the icon to read the news clip, then answer the following questions.
The graph shows the market for milk in Venezuela when a price control is in effect.
Draw a shape that represents:
1) consumer surplus. Label it CS.
2) producer surplus. Label it PS.
3) the deadweight loss. Label it DWL.
Also draw a shape that show the resources lost from time spend in line. Label it
Loss.
Moving from a milk market with no price controls to a milk with price controls
consumer surplus and
producer surplus.
OA. increases; increases
OB. increases; decreases
OC. decreases; increases
OD. decreases; decreases
In the market for cheese,
OA. consumer surplus decreases and producer surplus decreases
60-
50-
40-
30
20-
10-
Price (bolivars per gallon)
0
40
$
300
200 300 400 500 600 700
Quantity (gallons of milk)
>>> Draw only the objects specified in the question.
100
Price
control
D
Next
SOU
If a price ceiling is not binding, then
a. the market will be less efficient than it would be without the price ceiling.
b. there will be a surplus in the market.
c. there will be a shortage in the market.
d. there will be no effect on the market price or quantity sold.
Chapter 4 Solutions
Economics For Today
Ch. 4.2 - Prob. 1YTECh. 4.2 - Prob. 2YTECh. 4.2 - Prob. 3YTECh. 4.2 - Prob. 4YTECh. 4.3 - Prob. 1YTECh. 4.3 - Prob. 2YTECh. 4 - Prob. 1SQPCh. 4 - Prob. 2SQPCh. 4 - Prob. 3SQPCh. 4 - Prob. 4SQP
Ch. 4 - Prob. 5SQPCh. 4 - Prob. 6SQPCh. 4 - Prob. 7SQPCh. 4 - Prob. 8SQPCh. 4 - Prob. 9SQPCh. 4 - Prob. 10SQPCh. 4 - Prob. 1SQCh. 4 - Prob. 2SQCh. 4 - Prob. 3SQCh. 4 - Prob. 4SQCh. 4 - Prob. 5SQCh. 4 - Prob. 6SQCh. 4 - Prob. 7SQCh. 4 - Prob. 8SQCh. 4 - Prob. 9SQCh. 4 - Prob. 10SQCh. 4 - Prob. 11SQCh. 4 - Prob. 12SQCh. 4 - Prob. 13SQCh. 4 - Prob. 14SQCh. 4 - Prob. 15SQCh. 4 - Prob. 16SQCh. 4 - Prob. 17SQCh. 4 - Prob. 18SQCh. 4 - Prob. 19SQCh. 4 - Prob. 20SQ
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Similar questions
- Question 2 The government has imposed an effective price control for an agricultural product of $12. The equilibrium price for this market is $8. Ainswer the followving question? a. Describle what type of price control is this? b. Draw the market (demand and supply) for this market and show the price control. c. What are the consequences of this price controlarrow_forwardHelp Maximum Prce Willing to Pay $13 Person Minimum Acceptable Price Person Bob Carlos Barb 12 $3 Courtney 4 Bill 11 Chuck Bart 10 Cindy Brent 6. Craig Betty 8. Chad 8. Instructions: Enter your answers as a whole number. a. What is the total surplus if Bob buys a unit from Carlos? b. What is the total surplus if Barb buys a unit from Courtney? $に d. If you match up pairs of buyers and sellers so as to maximize the total surplus of all transactions, what is the largest total surplus that can be achieved? c. What is the total surplus if Bob buys a unit from Chad? %24 Next > 9 of 10 Prey %24arrow_forwardExplanation it correctlyarrow_forward
- That’s the graph of the last problemarrow_forwardLook at the tables below. Person Bob Barb Bill Bart Brent Betty $ Maximum Price Willing to Pay $17 14 13 12 11 10 Person Carlos Courtney Chuck Cindy Craig Chad Instructions: Enter your answers as a whole number. a. What is the total surplus if Bob buys a unit from Carlos? $ b. What is the total surplus if Barb buys a unit from Courtney? $ c. What is the total surplus if Bob buys a unit from Chad? Minimum Acceptable Price $6 7 8 9 10 11 d. If you match up pairs of buyers and sellers so as to maximize the total surplus of all transactions, what is the largest total surplus that can be achieved?arrow_forwardMaximum Price Willing to Pay Реrson Minimum Acceptable Price Person Bob $13 Carlos $3 -Barb 12 Courtney 4 Bill 11 Chuck 5 Bart 10 Cindy Brent Craig 7 Betty 8. Chad 8. Instructions: Enter your answers as a whole number. a. What is the total surplus if Bob buys a unit from Carlos? $4 10 b. What is the total surplus if Barb buys a unit from Courtney? 24 8. c. What is the total surplus if Bob buys a unit from Chad? %24 5. d. If you match up pairs of buyers and sellers so as to maximize the total surplus of all transactions, what is the largest total surplus that can be achieved? %24 9 of 10 Next > < Prev MacBook Air %24 %24arrow_forward
- Help plz & graph 1 4arrow_forwardThe figure to the right shows the U.S. demand and supply for leather footwear. Under autarky, the consumer surplus is area OA. S + V OB. R. OC. S. OD. R+S+V. Price $54 30 24 0 R S V W Q TU X Y Q₁ Q₂ US Supply World price US Demand Quantity of leather footweararrow_forward$15 $12 $8 28 Select one: a. $7 b. $3 500 700 C. $4 d. $15 Supply Social value Demand The figure above shows a market for Softella medicated tissues. Assume the only use for the tissues is to wipe and clean your hands, which prevents the spread of germs to others. If the government were to subsidize the users of the tissues, what would be the dollar amount of the subsidy? Quantity of boxes of so ftella medicated tissuesarrow_forward
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