Microeconomics
11th Edition
ISBN: 9781260507140
Author: David C. Colander
Publisher: McGraw Hill Education
expand_more
expand_more
format_list_bulleted
Question
Chapter 5.A, Problem 8QE
(a)
To determine
Change in the supply curve when there is subsidy in the economy.
(b)
To determine
New
(c)
To determine
Price paid by consumers and received by sellers.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
What effect does a per-gallon tax on gasoline have on the market for gasoline? Who pays for the increase in tax?
Quantity Demanded
(units)
Price
(dollars per unit)
250
200
40
150
80
100
120
50
160
200
Refer to the table above. If the equilibrium price is $175, what will be the consumer surplus?
4000
1000
6000
12000
Consider the market for bus travel, where equilibrium price and quantity is determined by demand and supply. If bus travel is an inferior good and there is an increase in income and at the same time, the government subsidises bus travel, which of the following will occur?
(a) The equilibrium price and quantity will be lower.
(b) The equilibrium quantity will be higher, but the impact on price will be unknown.
(c) The equilibrium price will be lower, but the equilibrium quantity will be higher.
(d) The equilibrium price will be lower, but the impact on quantity will be unknown.
Chapter 5 Solutions
Microeconomics
Ch. 5.1 - Prob. 1QCh. 5.1 - Prob. 2QCh. 5.1 - Prob. 3QCh. 5.1 - Prob. 4QCh. 5.1 - Prob. 5QCh. 5.1 - Prob. 6QCh. 5.1 - Prob. 7QCh. 5.1 - Prob. 8QCh. 5.1 - Prob. 9QCh. 5.1 - Prob. 10Q
Ch. 5.A - Prob. 1QECh. 5.A - Prob. 2QECh. 5.A - Prob. 3QECh. 5.A - Prob. 4QECh. 5.A - Prob. 5QECh. 5.A - Prob. 6QECh. 5.A - Prob. 7QECh. 5.A - Prob. 8QECh. 5.A - Prob. 9QECh. 5 - Prob. 1QECh. 5 - Prob. 2QECh. 5 - Prob. 3QECh. 5 - Prob. 4QECh. 5 - Prob. 5QECh. 5 - Prob. 6QECh. 5 - Prob. 7QECh. 5 - Prob. 8QECh. 5 - Prob. 9QECh. 5 - Prob. 10QECh. 5 - Prob. 11QECh. 5 - Prob. 12QECh. 5 - Prob. 13QECh. 5 - Prob. 14QECh. 5 - Prob. 15QECh. 5 - Prob. 16QECh. 5 - Prob. 17QECh. 5 - Prob. 1QAPCh. 5 - Prob. 2QAPCh. 5 - Prob. 3QAPCh. 5 - Prob. 4QAPCh. 5 - Prob. 5QAPCh. 5 - Prob. 1IPCh. 5 - Prob. 2IPCh. 5 - Prob. 3IPCh. 5 - Prob. 4IPCh. 5 - Prob. 5IPCh. 5 - Prob. 6IPCh. 5 - Prob. 7IPCh. 5 - Prob. 8IPCh. 5 - Prob. 9IPCh. 5 - Prob. 10IPCh. 5 - Prob. 11IPCh. 5 - Prob. 12IPCh. 5 - Prob. 13IPCh. 5 - Prob. 14IP
Knowledge Booster
Similar questions
- Write a Literature Review on the causes and consequences of rising food prices on lower income households in Jamaicaarrow_forwardPlease answer the following. A diagram and one paragraph should help to support your answer. Question: With consideration for elasticity (especially PED), what would be one industry in which the government instituting a subsidy would make sense and why?arrow_forwardWhat is efficient quantityarrow_forward
- 25 20 15 10 5 d(q) = 20-9/20 s(q) = 11+q/40 40 80 120 160 200 (a) Find a price where the supply and demand curve would predict a surplus in the marketplace for the produce. Explain how you know there would be a surplus using using data from the supply and demand curve. (b) Estimate the price where the consumers would completely stop buying the product. Explain how you found your answers by referring to the above graph.arrow_forwardAt a unit price of 16,000 the demand of a product is 300 units and at a price of 48000 the demand is 100 units.at a unit price of 30000 the supply is 550 units and at a unit price of 50000 the supply is 650 units.determine the equilibrium price and quantityarrow_forwardThe government is considering an increase in the tax on gasoline. They know that the price elasticity of demand for gas is -0.25. The current price is $2.00 per gallon. They are willing to allow the quantity of gas sold to fall by 10%. What would be the approximate tax increase (in cents per gallon) that would lead to a 10% reduction in quantity demanded? Multiple Choice 8 cents 40 cents 80 cents 20 cents 25 centsarrow_forward
- Why do some people oppose the state of food and agriculture of 2021?arrow_forwardUse public choice theory to explain the persistence of farm subsidies in the face of major criticisms of those subsidies. If the special-interest effect is so strong, what factors made it possible in 1996 for the government to end price supports and acreage allotments for several crops?arrow_forwardSuppose an economist estimates that the price elasticity of supply for red wine is2.4 while its price elasticity of demand is -4.0.If the government decides to impost a per-unit sales tax of $40 per bottle of redwine, how would the market price for red wine be affected? Show yourcalculation.arrow_forward
- Identify 5 common issues in food and Agriculture and list down possible solution to solve the problem in food and agriculture you have identified.arrow_forwardWhat is Consumer Surplus at a price of $5? Price Quantity Demanded Quantity Supplied 12 1 6 10 2 5 8 3 4 6 4 3 4 5 2 2 6 1 Multiple Choice $4 $20 $16arrow_forwardFor the demand curve shown, find the total amount of consumer surplus that results in the gasoline market if gasoline sells for $2 per gallon. Price ($/gallon) 12 11 10 9 8 7 6 5 4 327 1 0 Demand for gasoline 100 10 20 30 40 50 - %% Quantity (1,000s of gallons/year) 110 >120 Instructions: Enter your response as a whole number. Consumer surplus: $ per year.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Survey of Economics (MindTap Course List)EconomicsISBN:9781305260948Author:Irvin B. TuckerPublisher:Cengage Learning
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Survey of Economics (MindTap Course List)
Economics
ISBN:9781305260948
Author:Irvin B. Tucker
Publisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning