Government can use price floor rather than ceiling. Price floor is also a measure of price control imposed by the government. But this is a control or limit on how low a price can be charged for any commodity. It is the minimum price set by the government on particular goods and services in order to prevent producers from being paid very less price.. Draw a diagram to illustrate this (showing explanation )

Government can use price floor rather than ceiling. Price floor is also a measure of price control imposed by the government. But this is a control or limit on how low a price can be charged for any commodity. It is the minimum price set by the government on particular goods and services in order to prevent producers from being paid very less price.. Draw a diagram to illustrate this (showing explanation )

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter4: Supply And Demand: An Initial Look

Section: Chapter Questions

Problem 4DQ

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2. Below is the market information for rental housing in an urban market: Demand P₁ = $4000 Q = 0 P₂ = $2000 Q = 40 Supply Q. = 60 P. = $3000 P, = $1000 Q, = 20 a. Construct the graph for the market of rental housing based on this data. b. Set a price ceiling at $1000.00 per unit of rental housing and describe the results. 3. Below are the equations for the quantity demanded and quantity supplied for a given market. Using the equations please find the equilibrium price quantity. Remember, at equilibrium Q, - 2- 40 - 4P = Q | 10+ 6P = Q
PRICE [Dolars per laptop) The following diagram shows supply and demand in the market for laptops. 150 Demand 135 120 105 90 75 60 45 30 15 Supply ° 1 0 35 70 105 140 175 210 245 280 QUANTITY (Millions of laptops) 315 350 Fill in the following blanks with integer values: The market price is The market quantity is The consumer surplus is 4200 The producer surplus is 4200 The total surplus is 8400 A price ceiling is imposed at $60. The market price is now There is now a (surplus/shortage/none) Is there deadweight loss (yes/no)? of what amount? How much if any? If a price floor is implemented at $65, would it be binding? (yes/no)
QUESTION 4 Use the following supply and demand schedules for skate boards in table 18.1, to answer the questions 18(a). to 18(d) below. Table 18.1 Price ($) 300 Quantity Demanded Quantity Supplied 60 30 400 55 40 500 50 50 600 45 60 700 40 70 800 35 80 a. In response, to lobbying by the skate board association, the government places a price ceiling at the price of $700 on skate boards. What will this have on the market for skate boards? Explain your answer. b. In response, to lobbying by the skate board association, the government places a price ceiling of $400 on skate boards. Use the information provided in Table 18.1, to plot the supply and demand curve for skate boards. c. Use the information provided in Table 18.1, to plot the price ceiling of $400 on skateboards. d. What will be the result of a price ceiling of $400 on skate boards?
7. In the late 18th century, the price of bread in NYC was controlled, and set at a predetermined price which was above the market price. a) Draw a diagram showing supply and demand for bread, and the effects of the policy. Did the policy act as a price ceiling or a price floor? b) What kinds of inefficiencies were likely to arise when the controlled price of bread was above the market price? Explain in detail. One year during this period, a poor wheat harvest caused a leftward shift in the supply of bread and therefore an increase in market prices. New York bakers found that the controlled price of bread was now below the market price. c) Draw the diagram showing the effect of the price control on the market for bread during this one year period. Did the policy act as a price floor or price ceiling? d) What kinds of inefficiencies occurred during that period?
Use the following supply and demand schedules for skate boards in table 18.1, to answer the questions18(a). to 18(d) below. Table 18.1 Price ($) Quantity Demanded Quantity Supplied 300 60 30 400 55 40 500 50 50 600 45 60 700 40 70 800 35 80 a. In response, to lobbying by the skate board association, the government places a price ceiling st the price of $700 on skate boards. What will this have on the market for skate boards? Explain your answer.b. In response, to lobbying by the skate board association, the government places a price ceiling of $400 on skate boards. Use the information provided in Table 18.1, to plot the supply and demand curve for skate boardsc. Use the information provided in Table 18.1, to plot the price ceiling of $400 on skateboards. d. What will be the result of a price ceiling of $400 on skate boards?
Questions for Chapter 7 Following figure shows the demand and supply curves in Olive Oil market ↑ Price 20 18 16 14 12 10 B 6 4 2 S D 2 4 6 10 12 14 16 Quantity a. Suppose a $3 per-unit tax is imposed on the sellers of this good. What price will buyers pay for the good after the tax is imposed? How much is the burden of this tax on the buyers in this market? b. Suppose a $3 per-unit tax is imposed on the sellers of this good. What is the effective price that sellers will receive for the good after the tax is imposed? c. Suppose a $4 per-unit tax is imposed on the sellers of this good. How many units of this good will be sold after the tax is imposed?
landlords show up at the next council meeting and demand an increase in rents.the council members vote to repeal the price ceiling and instead replace it with a price floor that is RM 50 above the equilibrium price. what is the new market price? how many two-bedroom apartments will be rented? Dr. can you write more details about the question i wanna the answer but i also need to know the steps tqvm
6. The price of wheat is determined by supply Sw = 2pw-40 and demand Dw = 200-2pw. Next month the Wheat Marketing Board will introduce a price ceiling at pw = 40. The price of corn is also determined by supply Sc = 2pc - 2pw and demand Dc = 240-2pc. a. Provide a Supply and Demand Diagram to illustrate and quantify the market for wheat. Show how the price ceiling will affect the prices and quantities in the wheat market. b. Illustrate and compute the efficiency loss in the wheat market caused by this ceiling. C. Provide a Supply and Demand Diagram to illustrate and quantify the market for corn. Show how a price ceiling in the wheat market will affect prices and quantities in the corn market.
The table shows the demand and supply schedules for on-campus housing. If the college puts a rent ceiling on rooms of $750 a month, rent is $ and the number of rooms rented is. The on-campus housing market is Rent (dollars per month) 500 550 600 650 700 750 Quantity demande 2.500 2,250 2,000 1,750 1,500 1,250 (rooms) Quantity supplied 2,000 2,000 2,000 2,000 2,000 2,000
Use the following supply and demand schedules for skate boards in table 18.1, to answer the questions(a). to (d) below.Table 18.1 Price Quantity Demanded Quantity Supplied 300 60 30 400 55 40 500 50 50 600 45 60 700 40 70 800 35 80 a. In response, to lobbying by the skate board association, the government places a price ceiling at the price of $700 on skate boards. What will this have on the market for skate boards? Explain your answer. b. In response, to lobbying by the skate board association, the government places a price ceiling of $400 on skate boards. Use the information provided in Table 18.1, to plot the supply and demand curve for skate boards. c. Use the information provided in Table 18.1, to plot the price ceiling of $400 on skateboards. d. What will be the result of a price ceiling of $400 on skate boards?
1. Use the graph below to answer the questions that follows: Price Dollars per gallon GH¢9.00 GH¢7.00 GH¢4.00 12,000 18,000 30,000 Quantity (gallons per day) d. Suppose imposition of maximum price legislation reduced the price oil from the equilibrium price to the maximum price control price. Calculate: Price elasticity of demand Price elasticity of supply i. ii. e. From your calculation, which of the two curves is more elastic? Explain your answer.
Question The below graph shows the market of air tickets per month with no Government intervention What are the Price and Quantity of Equilibrium? Calculate total Surplus at equilibrium. The government intervenes by setting a maximum price to be sold of 350$. What type of Price control is it? Who is it supposed to gain and lose from this intervention? Will this create a surplus or shortage? Calculate