Complete the following table by indicating whether each of the statements is an example of a price ceiling or a price floor and whether it is binding or nonbinding. Statement Price Control Binding or Not The government prohibits donut shops from selling donuts for more than $0.80 each. There are many teenagers who would like to work at donut shops, but they are not hired Binding due to minimum-wage laws. The government has instituted a legal minimum price of $0.80 each for donuts. Non-binding

Complete the following table by indicating whether each of the statements is an example of a price ceiling or a price floor and whether it is binding or nonbinding. Statement Price Control Binding or Not The government prohibits donut shops from selling donuts for more than $0.80 each. There are many teenagers who would like to work at donut shops, but they are not hired Binding due to minimum-wage laws. The government has instituted a legal minimum price of $0.80 each for donuts. Non-binding

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Figure 6-8 IS 7- 5 10 15 20 25s 35 40 so ss 0 6S T0 7s 30 8S yowity 6. Refer to Figure 6-8. When a certain price control is imposed on this market, the resulting quantity of the good that is actually bought and sold is such that buyers are willing and able to pay a maximum of P, dollars per unit for that quantity and sellers are willing and able to accept a minimum of P; dollars per unit for that quantity. If P, - P2 = $3, then the price control is a. a price floor of $5.00. b. a price ceiling of $5.00. c. a price ceiling of $2.00. d. either a price ceiling of $2.00 or a price floor of $5.00.
Suppose the following graph shows the demand for, and supply of, apartments in New York City. Use the black point (plus symbol) to indicate the equilibrium monthly rent and quantity of apartments in the absence of price controls. Then use the green point (triangle symbol) to fill the area representing consumers' surplus, and use the purple point (diamond symbol) to fill the area representing producers' surplus. MONTHLY RENT (Dollars per apartment) 2800 2600 2400 2200 2000 1800 0 Demand Supply 0.8 3.2 QUANTITY OF APARTMENTS (Millions per month) 1.6 2.4 4.0 Equilibrium A CS PS ?
A recent study found that the demand and supply schedules for financial calculators are as follows: Price/calculators Quantity Demanded Quantity Supplied 20 160 40 40 140 60 60 120 80 80 100 100 100 80 120 120 100 Co an Coll 80 60 40 D. 20 40 60 80 100 120 140 160 a) Determine: Price of Equilibrium_ and Quantity of Equilibrium b) Determine the effect of $60 Price Ceiling. Is it binding? Why? Will it cause Shortage or Surplus? And by how much? c) Determine the effect of $120 Price Floor. Is it binding? Why? Will it cause Shortage or Surplus? And by how much?
The table shows the demand and supply schedules for tacos. If the quantity demanded of tacos decreases by 140 per hour at each price, the new price of a taco is $ Total surplus by $ decreases increases C M Price (dollars per taco) 0 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 Quantity demanded (tacos per hour) 560 Quantity supplied 490 420 350 280 210 140 70 0 0 70 140 210 280 350 420 490 560 Next
Rent control is common in some cities, particularly in the United States. You will have noticed some of the consequences in movies or TV shows, usually police stories, set in the high-rise areas of New York City, for example. Suppose you have been given the following information about the market for rental housing in Winona: Quantity Demanded Rent (dollars per month) $500 550 600 650 700 750 800 20,000 15,000 10,000 5,000 2,500 1,500 1,000 a) What is the equilibrium rent? b) What is the equilibrium quantity of rented housing? Quantity Supplied 10,000 10,000 10,000 10,000 10,000 10,000 10,000 Now suppose that a rent ceiling of $700 is imposed in the housing market for Winona. c) What is the quantity of housing demanded? d) What is the quantity of housing supplied? e) Is there excess demand for or excess supply of housing with the imposition of a rent ceiling? Explain what is happening in the market for rental housing market in Winona.
A firm creates an allergy medicine, call it Chemical X, and sells it on the market under patentprotection. Now suppose the patent expires, and other firms can now produce and sell Chemical X inthe market. What do we expect to happen to the market equilibrium quantity and price of ChemicalX? a)The equilibrium price and quantity will increase b)The equilibrium price and quantity will decrease c)Equilibrium quantity will decrease and equilibrium price will increase d)Equilibrium quantity will increase and equilibrium price will decrease e)The market equilibrium will not be affected
The table shows the demand and supply schedules for on-campus housing. If the college puts a rent ceiling on rooms of $600 a month, what is the rent, how many rooms are rented, and is the on-campus housing market efficient? CELEB If the college puts a rent ceiling on rooms of $600 a month, the rent is $ and the number of rooms rented is Rent (dollars per month) 500 550 600 650 700 750 Quantity demanded 5,000 4,500 4,000 3,500 3,000 2,500 (rooms) Quantity supplied 4,500 4,500 4,500 4,500 4,500 4,500
Seeing the huge demand for pens, the government decides to impose price controls on masks. Consider the following two scenarios for part a and for part b Suppose the government imposes a price ceiling at $1. Is it binding? Show whether there shortageor surplus in the demand-supply diagram above. How large is this surplus or shortage? Please Briefly explain your answers to the above. Now, Suppose the government imposes a price floor at $2. Is it binding? Show whether there is a surplus or a shortage in the demand-supply diagram above. How large is this surplus or shortage? briefly explain your answers to the above 1 c Complete the table below and submit the completed table in your answer Tax Price paid by Buyers Price received by Sellers Quantity of masks sold 0 $1 on buyers $1 on sellers If the tax is $1 and it is on buyers What is the tax burden of buyers? Make your calculations clear.
Seeing the huge demand for pens, the government decides to impose price controls on masks. Consider the following two scenarios for part a and for part b Suppose the government imposes a price ceiling at $1. Is it binding? Show whether there shortageor surplus in the demand-supply diagram above. How large is this surplus or shortage? Please Briefly explain your answers to the above. Now, Suppose the government imposes a price floor at $2. Is it binding? Show whether there is a surplus or a shortage in the demand-supply diagram above. How large is this surplus or shortage? briefly explain your answers to the above
1. Here is the demand for coconuts: P            3             4           5            6           7           8           9           11           13           16           20 QD          1100      1000      900      800      700      600      500        400        300        200        100 And here is supply P            3           4           5             6         7            8          9            10          11        12             13 QS           100        200        300        400        500        600        700        800        900        1000       1100 Identify the equilibrium price, quantity, consumer and producer surplus and show them on a graph. The graph should be pretty simple here, the main issue is finding the numbers for consumer and producer surplus. Again, let me reiterate: I WANT NUMBERS FOR CONSUMER AND PRODUCER SURPLUS! Furthermore, I want you to do this the way that I do. In other words, calculate it like it's a bunch of…
1. Here is the demand for coconuts: P            3             4           5            6           7           8           9           11           13           16           20 QD          1100      1000      900      800      700      600      500        400        300        200        100 And here is supply P            3           4           5             6         7            8          9            10          11        12             13 QS           100        200        300        400        500        600        700        800        900        1000       1100 Identify the equilibrium price, quantity, consumer and producer surplus and show them on a graph. The graph should be pretty simple here, the main issue is finding the numbers for consumer and producer surplus.
1. Here is the demand for coconuts: P            3             4           5            6           7           8           9           11           13           16           20 QD          1100      1000      900      800      700      600      500        400        300        200        100 And here is supply P            3           4           5             6         7            8          9            10          11        12             13 QS           100        200        300        400        500        600        700        800        900        1000       1100 Identify the equilibrium price, quantity, consumer and producer surplus and show them on a graph. The graph should be pretty simple here, the main issue is finding the numbers for consumer and producer surplus. Again, let me reiterate: I WANT NUMBERS FOR CONSUMER AND PRODUCER SURPLUS! Furthermore, I want you to do this the way that I do. In other words, calculate it like it's a bunch of…