Managerial Economics: A Problem Solving Approach
5th Edition
ISBN: 9781337106665
Author: Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher: Cengage Learning
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Chapter 8, Problem 6MC
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#86. In the table shown, what would be the result if the price were $8?
A. A surplus of 30 units would exist and price would tend to fall.B. A surplus of 60 units would exist and price would tend to rise.C. A surplus of 60 units would exist and price would tend to fall.D. A shortage of 30 units would exist and price would tend to rise.
#87. What would result if the price were set at $1.75
A. There would be a shortage of 40 units.B. There would be a surplus of 40 units.C. There would be a surplus of 20 units.D. The market would be in equilibrium.
Please provide right answer tutor. GRACIE ^-^
Assume the market for corn is depicted as in the tablethat appears below.a. Complete the table below.b. What market pressure occurs when quantity demanded exceedsquantity supplied? Explain.c. What market pressure occurs when quantity supplied exceedsquantity demanded? Explain.d. What is the equilibrium price?e. What could change the equilibrium price?f. At each price in the first column of the table below, how muchis sold?
Consider the market for plywood in a costal Florida town, which was hit by a hurricane. The residents need to rebuild their houses and are buying plywood in large quantities. To keep the price of plywood from going up too high, the Governor of Florida has decided to impose price controls in the wake of the hurricane. What is the most likely outcome?a. People will be able to obtain the plywood that they need. b. Plywood suppliers from out of state will increase deliveries to Florida to take advantage of the strong demand. c. There will be persistent excess demand for plywood. d. Quantity supplied will increase to meet new demand.
Chapter 8 Solutions
Managerial Economics: A Problem Solving Approach
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- The graph attached shows the demand and supply in a market. (a) The equilibrium quantity is -------------- and the equilibrium price is -----------. (b) If the actual market price is set at $100 per unit, there will be a --------------- (shortage or surplus) of ____units in this market. (c) If government wants to use a price floor, it should choose a price of how much? (d) At that price floor how many units are going to be sold in this market?arrow_forwardb. Prices in most market are free to rise or fall to their equilibrium levels, no matter how high or low those levels might be. However, government sometimes concludes that supply and demand will produce prices that are unfairly high for buyers or unfairly low for sellers. So, government may place legal limits on how high or low a price or prices may go. With the rapidly rising of the crude oil price, it caused to increase in gasoline price and lead to increase the equilibrium price in the market. This rapidly rising price of gasoline greatly burdens low- and middle-income household. Analyse how government policy can adjust on this situation to keep gasoline remain affordable for these household.arrow_forwardIn a competitive market, if the government imposes a price ceiling below the equilibrium price, what is likely to happen?A. Surplus of goods B. Shortage of goods C. No change in quantity exchangedD. Price remains the samearrow_forward
- 80 %24 %24 %24 %24 structure.com/courses/8344/assignments/704335 SIS Powerschool d Desmos Classroom... My ICEV | My Cours... Student Response .. 262 Economics a... Refer to the following supply and demand schedules for the market for yo-yos. Price $1 $2 35 09 85 09 $4 110 1. What are the equilibrium price and quantity of yo-yos? 2. If price in the market is $2, will there be a surplus or shortage of yo-yos and how large will the surplus/shortage be? Show your work. 3. If price is $2, will price tend to increase, decrease, or stay the same over time? 4. If the price in the market is $5, will there be a surplus or shortage of yo-yos and how large will the surplus/shortage be? Show your work. 5. If price is $5, will it tend to increase, decrease, or stay the same over time? Coa prt scarrow_forwardA recent study found that the demand an supply for Frisbies schdules are as follows:a.What are the equilibrium price and quantity of Frisbees?b.Frisbee manufacture persuade the government that frisbee production improves scientists'understanding of areodynamics and thus is important for national security.a concern Congress votes to impose a price floor $2 above the equilibrium price.What is the new market price?How many Frisbees are sold?c.Irate college students march on washington and demand a reduction in the price of Frisbees.An even more concerned Congress votes to repeal the price floor and impose a price ceiling $1 below the former price floor.What is the new market price?How many Frisbees are sold?arrow_forward3. Suppose that the free market equilibrium price of bourbon is $5.00 a bottle, and that the government sets a price floor of $6.00 a bottle on bourbon. The most likely result of this action is that: a. b. C. d. there will now be an excess supply of bourbon the market price of bourbon will remain at $5.00 a bottle. the demand curve for bourbon will shift outward. there will now be an excess demand for bourbon.arrow_forward
- 6. What would happen to the market if the price ceiling was set above the equilibrium?arrow_forwardSuppose that a new scientifie study is published that demonstrates that eating apples slows aging. How will this affect the equilibrium price and quantity in the market? a. The equilibrium price will increase and the equilibrium quantity will decrease. b. The equilibrium price will decrease and the equilibrium quantity will increase. c. Both the equilibrium quantity and price will increase. d. Both the equilibrium quantity and price will decrease.arrow_forwardWhen a market is at equilibrium, A B C D sellers are willing to sell less than consumers are willing to buy. sellers are willing to sell more than consumers are willing to buy. neither consumers nor producers are satisfied with the quantity traded. both producers and consumers are satisfied with the quantity traded.arrow_forward
- Nonearrow_forwardX X. X. X Graph 1 Graph 2 Graph 3 Graph 4 Problem 1 e: Referencing the graphs shown above, which of the following statements is corect? Graph 1 illustrates a price ceiling and would result in a shortage. O Graph 2 illustrates a price floor and would result in a shortage. O Graph 3 illustrates a price ceiling and would result in a surplus. O Graph 4 illustrates a price floor and would result in a surplusarrow_forwardIn the market for beef, two things are happening simultaneously. First, a drought causes many cows to die. Secondly, due to a new high-fibre diet, people are eating less steak. If the influence of the high-fibre diet is greater, what will the effect be on the equilibrium price and equilibrium quantity? A. Equilibrium quantity will decrease and equilibrium price will rise. B. Equilibrium quantity will increase and equilibrium price will rise. C. Equilibrium quantity will increase and equilibrium price will fall. D. Equilibrium quantity will decrease and equilibrium price will fall.arrow_forward
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