IMG_0841
.jpeg
keyboard_arrow_up
School
University of Maryland *
*We aren’t endorsed by this school
Course
101
Subject
Economics
Date
Apr 30, 2024
Type
jpeg
Pages
1
Uploaded by MegaFogSeaUrchin10 on coursehero.com
Question 2 0.18 / 0.18 pts Markets ration via: the price mechanism non-market rationing soclal forces non-economic forces social, political, and cultural means Question 3 0.18 / 0.18 pts
Discover more documents: Sign up today!
Unlock a world of knowledge! Explore tailored content for a richer learning experience. Here's what you'll get:
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Related Questions
The government in your country is considering three programs that affect the market for cigarettes.
Program 1: Media campaigns and labeling requirements aimed at making the public aware of the dangers of cigarette smoking
Program 2: A price-support program for tobacco farmers.
Program 3: A cap on the number of cases of cigarettes sold per quarter at 20,000 cases.
Determine the impact on the market for cigarettes if Program 2 is implemented.
Impact on demand
Impact on supply
impact on price
Impact on quatity
Here are the list of choices to choose one from for each
Quantity above equilibrium
Change in price uncertain
Excess supply
Excess demand
Shift inwards/to left
Quantity below equilibrium
Increase towards equilibrium
decrease towards equilibrium
no impact
change in quantity uncertain
Price below equilibrium
arrow_forward
The government in your country is considering three programs that affect the market for cigarettes.
Program 1: Media campaigns and labeling requirements aimed at making the public aware of the dangers of cigarette smoking
Program 2: A price-support program for tobacco farmers.
Program 3: A cap on the number of cases of cigarettes sold per quarter at 20,000 cases.
Determine the impact on the market for cigarettes if Program 1 is implemented.
Impact on demand
Impact on supply
impact on price
Impact on quatity
Here are the list of choices to choose one from for each
Excess supply
Change in quantity uncertain
shift inwards/to left
increase equilibrium quantity
decrease equilibrium quantity
increase towards equilibrium
no impact
decrease equilibrium price
shift outwards/to right
change in price uncertain
inrease equilibrium price
arrow_forward
Current Stats for Gasoline:
Government Enforced Price Ceiling - $4.50/gallon
Current Market Equilibrium - $3.00/gallon
OPEC, the largest global supplier of oil used to make gasoline, has decided to reduce output by 50%. This policy change is expected to drive up the cost of gasoline to $5.00/gallon. How does that price change interact with the price ceiling?
A. Changes the Price Ceiling from Binding to Non-Binding
B. Disrupts Oil Supply
C. Changes the Price Ceiling from Non-Binding to Binding
D. No Change
arrow_forward
Use appropriate supply and demand diagrams to analyze the effects on the market equilibrium price and quantity traded of chicken, following:A successful advertising campaign by the government promoting the benefits of eating chicken.
arrow_forward
For each of the incident occurred in the cigarette market, explain whether the demand curve or the supply curve is affected and the effects on the equilibrium price and quantity in the cigarettes market. Support your answers with suitable market diagrams. Your diagram should take into consideration the price elasticity of demand and supply for cigarettes.
(i) Price of electronic vaporisers ( vapes) increases
(ii) Workers in the cigarettes industry have an increase in wages
(iii)Research concludes that smoking will cause cancer
arrow_forward
Price Per Unit
$20
$16
Answer:
$14
100
Supply
Demand
The graph above shows the demand and supply of a good.
Calculate the Gains from Trade in equilibrium
(Do not include a "$" sign in your response)
Quantity of
Alcohol
arrow_forward
Use appropriate supply and demand diagrams to analyze the effects on the market equilibrium price and quantity traded of chicken, following:An outbreak of bird flu that leads the government to have a large proportion of the country's stock of chickens destroyed.
arrow_forward
Change in supply vs. a change in quantity supplied (Answered)
Distinction between a movement along a supply curve and a shift of the supply curve (Answered)
Change in price vs. a change in a non-price factor
arrow_forward
Given the chart below, what is the equilibrium price and quantity?
Market for Bottled Water
$4
$2
30
60
90
120
Quantity (In Thousands)
Provide your answer below:
a =
thousand, p = $
per gallon
Price per
Gallon
arrow_forward
Using Supply and Demand to Analyze Markets - End of Chapter Problem
The diagram below illustrates the market for beef. Suppose the government has instituted a price support program for beef by
placing a price floor at $4.00 per pound. Under the program, any unsold beef will be purchased by the government and
destroyed. Answer the following questions about the impacts of this program.
Price
($/pound)
$4-
3-
0
0.5
a. What is the cost to consumers in lost surplus?
1
b. What is the cost to taxpayers to purchase the unsold beef?
1.5
S
D
Goolsbee et al., Microeconomics, 3e, © 2020
Worth Publishers
When entering your answers, pay close attention to the scale of the quantity axis!
Quantity of
beef (millions
of pounds)
Lost consumer surplus: $
Value of Unsold Beef: $
750000
arrow_forward
The government in your country is considering three programs that affect the market for cigarettes.
Program 1: Media campaigns and labelling requirements aimed at making the public aware of the dangers of cigarette smoking
Program 2: A price-support program for tobacco farmers
Program 3: A cap on the number of cases of cigarettes sold per quarter at 20,000 cases.
Determine the impact of on the market for cigarettes if Program 2 is implemented:
Impact on supply –
Impact on price –
Impact on quantity –
Impact on demand –
arrow_forward
Review the toilet paper supply and demand curve for February
shown below. Identify which label belongs to the supply curve,
the demand curve, and the equilibrium price and define each
word.
Y axis
(PRICE)
$1.50
X axis
(QUANTITY in rolls p/month)
10,000
arrow_forward
Illegal beer poses a great challenge to the beer market, explain how it affect domestic’s beer market through an appropriate demand-supply diagram
arrow_forward
The supply and demand for concert tickets are given in the table below.Price (R)0481216202428323640Quantity Demanded15141312111098765Quantity Supplied0000013579114.1.1. Plot the supply and demand curves to scale and establish the equilibrium price and quantity.
4.1.2. What is the excess supply or demand (as applicable) when price is R24? And when price is R36? 4.1.3. Describe the market adjustments in price induced by these two prices. 4.1.4. The functions underlying the example in the table are linear and can be presented as P = 18+2Q (supply) and P = 60−4Q (demand). Solve the two equations for the equilibrium price and quantity values. 4.2. Briefly explain how each of the following affects the demand for goods and services in a market place and highlight the effects on price and the equilibrium position.4.2.1. Price of the product or service 4.2.2. Price of related goods; 4.2.3. Income of consumers; 4.2.4. Number of consumers;
arrow_forward
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.
arrow_forward
Market equlibrium price for strawberries is 5 dollar per kg if demand increase why would not 5 dollar per kg be the equilibrium price anymore draw a diagram
arrow_forward
The government in your country is considering three programs that affect the market for cigarettes.
Program : A price-support program for tobacco farmers.
Determine the impact on the market if this program is implemented
(i) Impact on Demand?
(ii) Impact on Supply?
(iii) Impact on Price?
(iv) Impact on Quantity?
arrow_forward
Consider each scenario independently. In each of the following cases state, using verbal and graphical analysis
Show the correct increase / decrease in the demand or supply
Show correct labels
Show what will happen to the equilibrium price
Show what will happen to the equilibrium quantity
Show a brief explanation
A tax on gun buyers.
A binding price floor on guns
arrow_forward
Qd
Qs
4.75
Price of
Coffee ($ per
4.5
cup)
4.25
4
3.75
3.5
3.25
2.75
2.5
2.25
2
1.75
1.5
1.25
1
0.75
0.5
0.25
2.
25
1.
3.
4.
6.
00
Quantity of coffee, thousands of cups
1.5
4.5
6.5
9.5
arrow_forward
What happens in the market for corn if the midwest experiences severe flooding and much of the crops are destroyed?
Question 29 options:
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 price and the equilibrium quantity increase
D)
Both the equilibrium price and the equilibrium quantity decrease
arrow_forward
The table below shows the demand and supply schedule for gasoline in a hypothetical country called Microland
Price per litre ($)
Quantity Demanded in 000
Quantity Supplied in 000
litres (per Month)
litres (per month)
11
0
27
10
2
25
9
4
23
8
6
20
7
8
17
6
10
15
5
12
12
4
14
10
3
16
7
2
18
5
1
3
3
Describe THREE (3) other changes that could have the same effect on market supply of gasoline as the imposition of the subsidy
arrow_forward
Price
Quantity
Quantity
Surplus, Shortage, Equilibrium
Quantity'
Surplus, Shortage, or Equilibrium
$100
98
50
(1)
98
(5)
$75
70
70
(2)
125
(6)
$50
50
98
(3)
178
(7)
$25
10
125
(4)
200
(8)
If both supply and demand are a horizontal summation of quantites at specific prices then the number 6 in the table represents
Question 9 options:
a)
surplus
b)
shortage
c)
equilibrium
d)
either a,b, or c depending ont the circumstance
arrow_forward
The table below gives you information on the demand and supply of burgers
during a family day event organised by your company.
Price level
Quantity demanded
Quantity supplied
(RM)
2.10
800
7,200
4,800
2,400
1.80
1,600
2,400
3,200
4,100
1.60
1.40
800
1.20
200
Required:
(i)
Based on the information in the table above, determine the equilibrium
price of the burger. Please explain how you manage to derive such a
conclusion.
(ii)
Determine the number of burgers that could be sold, if the burger stall
operator decides to set the price of the burger at RM 1.80.
arrow_forward
Use appropriate supply and demand diagrams to analyze the effects on the market equilibrium price and quantity traded of chicken, following:
A fall in the price of fish which is a substitute for chicken.
arrow_forward
Given market demand QD =50_p and market supply p =Qs +5 find the market equilibrium price and quantity B what would be the state of the market price 25 was fixed at birr per unit calculate and interpret price elacity of demand and equilibrium point
arrow_forward
The graph below represents the market for gasoline. The price ceiling causes a shortage
of
thousands of gallons of gas.
Price ($)
Pt = $7.75
Pc = $3.50
Market for Gasoline
Qs = 140,
QE=697
QD = 1200
S
Price
Ceiling
Quantity (thousands
of gallons)
arrow_forward
In a free-market, how are the equilibrium price and the market-clearing price related?
Question 6 options:
a)
there is no relationship
b)
they are the same price
c)
the market-clearing price exceeds the equilibrium price
d)
the equilibrium price exceeds the market-clearing price
arrow_forward
What effect will each of the following have on the supply of auto tires? The granting of a 50-cent-per-unit subsidy for each auto tire produced.
arrow_forward
SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education
Related Questions
- The government in your country is considering three programs that affect the market for cigarettes. Program 1: Media campaigns and labeling requirements aimed at making the public aware of the dangers of cigarette smoking Program 2: A price-support program for tobacco farmers. Program 3: A cap on the number of cases of cigarettes sold per quarter at 20,000 cases. Determine the impact on the market for cigarettes if Program 2 is implemented. Impact on demand Impact on supply impact on price Impact on quatity Here are the list of choices to choose one from for each Quantity above equilibrium Change in price uncertain Excess supply Excess demand Shift inwards/to left Quantity below equilibrium Increase towards equilibrium decrease towards equilibrium no impact change in quantity uncertain Price below equilibriumarrow_forwardThe government in your country is considering three programs that affect the market for cigarettes. Program 1: Media campaigns and labeling requirements aimed at making the public aware of the dangers of cigarette smoking Program 2: A price-support program for tobacco farmers. Program 3: A cap on the number of cases of cigarettes sold per quarter at 20,000 cases. Determine the impact on the market for cigarettes if Program 1 is implemented. Impact on demand Impact on supply impact on price Impact on quatity Here are the list of choices to choose one from for each Excess supply Change in quantity uncertain shift inwards/to left increase equilibrium quantity decrease equilibrium quantity increase towards equilibrium no impact decrease equilibrium price shift outwards/to right change in price uncertain inrease equilibrium pricearrow_forwardCurrent Stats for Gasoline: Government Enforced Price Ceiling - $4.50/gallon Current Market Equilibrium - $3.00/gallon OPEC, the largest global supplier of oil used to make gasoline, has decided to reduce output by 50%. This policy change is expected to drive up the cost of gasoline to $5.00/gallon. How does that price change interact with the price ceiling? A. Changes the Price Ceiling from Binding to Non-Binding B. Disrupts Oil Supply C. Changes the Price Ceiling from Non-Binding to Binding D. No Changearrow_forward
- Use appropriate supply and demand diagrams to analyze the effects on the market equilibrium price and quantity traded of chicken, following:A successful advertising campaign by the government promoting the benefits of eating chicken.arrow_forwardFor each of the incident occurred in the cigarette market, explain whether the demand curve or the supply curve is affected and the effects on the equilibrium price and quantity in the cigarettes market. Support your answers with suitable market diagrams. Your diagram should take into consideration the price elasticity of demand and supply for cigarettes. (i) Price of electronic vaporisers ( vapes) increases (ii) Workers in the cigarettes industry have an increase in wages (iii)Research concludes that smoking will cause cancerarrow_forwardPrice Per Unit $20 $16 Answer: $14 100 Supply Demand The graph above shows the demand and supply of a good. Calculate the Gains from Trade in equilibrium (Do not include a "$" sign in your response) Quantity of Alcoholarrow_forward
- Use appropriate supply and demand diagrams to analyze the effects on the market equilibrium price and quantity traded of chicken, following:An outbreak of bird flu that leads the government to have a large proportion of the country's stock of chickens destroyed.arrow_forwardChange in supply vs. a change in quantity supplied (Answered) Distinction between a movement along a supply curve and a shift of the supply curve (Answered) Change in price vs. a change in a non-price factorarrow_forwardGiven the chart below, what is the equilibrium price and quantity? Market for Bottled Water $4 $2 30 60 90 120 Quantity (In Thousands) Provide your answer below: a = thousand, p = $ per gallon Price per Gallonarrow_forward
- Using Supply and Demand to Analyze Markets - End of Chapter Problem The diagram below illustrates the market for beef. Suppose the government has instituted a price support program for beef by placing a price floor at $4.00 per pound. Under the program, any unsold beef will be purchased by the government and destroyed. Answer the following questions about the impacts of this program. Price ($/pound) $4- 3- 0 0.5 a. What is the cost to consumers in lost surplus? 1 b. What is the cost to taxpayers to purchase the unsold beef? 1.5 S D Goolsbee et al., Microeconomics, 3e, © 2020 Worth Publishers When entering your answers, pay close attention to the scale of the quantity axis! Quantity of beef (millions of pounds) Lost consumer surplus: $ Value of Unsold Beef: $ 750000arrow_forwardThe government in your country is considering three programs that affect the market for cigarettes. Program 1: Media campaigns and labelling requirements aimed at making the public aware of the dangers of cigarette smoking Program 2: A price-support program for tobacco farmers Program 3: A cap on the number of cases of cigarettes sold per quarter at 20,000 cases. Determine the impact of on the market for cigarettes if Program 2 is implemented: Impact on supply – Impact on price – Impact on quantity – Impact on demand –arrow_forwardReview the toilet paper supply and demand curve for February shown below. Identify which label belongs to the supply curve, the demand curve, and the equilibrium price and define each word. Y axis (PRICE) $1.50 X axis (QUANTITY in rolls p/month) 10,000arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSONEngineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
- Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education