Question

Qd= 800-16P Qs= -40+4P Assume the government places a price ceiling at $3 below the mkt...

Qd= 800-16P

Qs= -40+4P

Assume the government places a price ceiling at $3 below the mkt equilibrium price.

What will be the effect?

Question 7 options:

There will be a shortage of 50 units

There will be a surplus of 50 units

There will be a shortage of 60 units

There will be a surplus of 60 units
Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Dear Student/ Learner, it was my great pleasure to help you solving this problem. I wish you best luck for your learning endeavour.
Happy Learning

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Let’s say the demand for burritos can be represented by Qd= 10-3P and the supply can...
Let’s say the demand for burritos can be represented by Qd= 10-3P and the supply can be represented by Qs= 2+P. At equilibrium: a P = 4, Q= 2. b P= 2, Q= 4.    c P = 4, Q= 4. d P = 2, Q = 5.   We refer to a situation where Qs>Qd as a _____. Price will ____ until mkt equilibrium is achieved. a Shortage, increase b Surplus, decrease c Surplus, increase d Shortage, decrease Qd= 800-16P...
Suppose that the Demand and Supply functions are : QD=800-4P and QS=8P-160. The government imposes a...
Suppose that the Demand and Supply functions are : QD=800-4P and QS=8P-160. The government imposes a per unit tax of $3. After the tax, the supply equation becomes: QS=8P-184. (Hint: you really should draw a graph for this question, as you did in the Extra Credit) Find Government Revenues and Deadweight Loss (DWL) AFTER the tax Select one: a. Government Revenues = 1,416; DWL = 12 b. Government Revenues = 1,416; DWL = 8 c. Government Revenues = 1,440; DWL...
1. The demand for a slice of pizza in NYC is: Qd = 10 - 4P...
1. The demand for a slice of pizza in NYC is: Qd = 10 - 4P The supply of a slice of pizza in NYC is: Qs = 3 + 3P Refer to above information. If P = $2, is there a surplus or shortage? What is the size of the surplus or shortage? (6 pts) 2. Consider the demand curve QD = 6 – 3P and the supply curve QS = P + 5. What is the price elasticity...
A market is described by the following supply and demand curves: QS = 2P QD =...
A market is described by the following supply and demand curves: QS = 2P QD = 400 - 3P Solve for the equilibrium price and quantity. If the government imposes a price ceiling of $70, does a shortage or surplus (or neither) develop? What are the price, quantity supplied, quantity demanded, and size of the shortage or surplus? If the government imposes a price floor of $70, does a shortage or surplus (or neither) develop? What are the price, quantity...
Question 3 a. What is price ceiling and why will the government implement such a policy?...
Question 3 a. What is price ceiling and why will the government implement such a policy? b. The market demand and supply equations for a commodity are QD = 50 - 10P QS = 20 + 2.5P i. What is the equilibrium price and equilibrium quantity? ii. Suppose the government imposes a price ceiling on the commodity of $3.00 and demand increases to QD = 75 - 10P.What is the impact on the market of the government’s action? iii. In...
Suppose Qd=40-P and Qs= -2+2P. If Price equals 20, quantity demanded will be Question 16 options:...
Suppose Qd=40-P and Qs= -2+2P. If Price equals 20, quantity demanded will be Question 16 options: 22 18 40 10 20 Question 17 (1 point) Suppose Qd=40-P and Qs= -2+2P. What is the equilibrium price in this market? Question 17 options: 14 2 13 20 12.66 Question 18 (1 point) Suppose Qd=40-P and Qs= -2+2P. What is the consumer surplus at equilibrium? Question 18 options: 39 676 169 338 14 Assume at a price of $22, consumer bought 180 units...
Suppose that the government places a ceiling on the price of a medical drug below the...
Suppose that the government places a ceiling on the price of a medical drug below the equilibrium price. Show why there is a shortage of the medical drug at the new ceiling price. Please add a graph to your explanation.
Assume that the market for Good X is defined as follows: QD = 64 - 16P...
Assume that the market for Good X is defined as follows: QD = 64 - 16P and QS = 16P - 8. If the government imposes a price ceiling at $1.00 in this market, what is the loss associated with this policy?    $64    $48    $25    $9    There is no loss because the restriction will have no effect.
Assume a demand function is given by Qd=40-2P+4Ps-2Pc+5Y and a supply function is given by Qs=16+4P-6Pi,...
Assume a demand function is given by Qd=40-2P+4Ps-2Pc+5Y and a supply function is given by Qs=16+4P-6Pi, where Ps, Pc, and Pi are the price of a substitute, complement, and input to production respectively. How does a $1 increase in the price of a substitute change the equilibrium price and the equilibrium quantity?
In general, what is a price ceiling? Group of answer choices A price ceiling sets the...
In general, what is a price ceiling? Group of answer choices A price ceiling sets the maximum price at which a good can be legally sold. A price ceiling sets the minimum price at which a good can be legally sold. A price ceiling comes in the form of a minimum wage none of the above Flag this Question Question 21 pts In general, what is a price floor? Group of answer choices A price floor sets the maximum price...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT