Question

Given the data below for the oil market, show a supply and demand diagram, determine the linear equations for demand and for supply, and find the equilibrium price and quantity in the market. Find both sets of equations for Q = f(P), and P = f(Q).

QD |
P |
QS |

83 |
60 |
80 |

82 |
70 |
82 |

81 |
80 |
83 |

80 |
90 |
83 |

79 |
100 |
84 |

78 |
110 |
85 |

77 |
120 |
86 |

76 |
130 |
86 |

76 |
140 |
87 |

75 |
150 |
88 |

- Would a price of $90 be a price ceiling or a price floor? Explain.

Answer #1

The price ceiling is a legal maximum price which can be charged by the sellers and it is set below the equilibrium price. The price ceiling imposed by the government leads shortage of goods.

If price ceiling is set below the equilibrium price, then it will be binding and if it is set above the equilibrium price, then it will be not binding.

Since the price floor is the legal minimum price which can be charged and it is set above the equilibrium price. It leads surplus of outputs.

As it can be seen in the table that at price $90, the quantity supplied is 83 units and quantity demand is 81 units.

It means there is excess supply at price $90.

Hence this is example of price floor because effective (binding price floor) create surplus.

Below represent scores on an exam, each entry one score for one
student
40
99
59
98
63
63
64
65
67
35
67
67
68
70
71
71
71
46
72
72
60
73
74
74
74
75
97
75
62
76
76
76
76
76
77
57
77
98
77
63
78
78
78
79
79
80
80
80
80
80
81
81
92
81
93
82
82
83
83
83
83
83
83
83
84
84
84...

Mid Score
Final Score
80
78
87
85
72
81
69
54
86
70
83
73
78
89
75
84
74
86
75
79
84
75
73
63
74
72
73
69
80
86
75
78
72
75
77
68
76
77
66
78
74
77
71
73
85
79
74
74
76
79
76
73
84
72
77
81
78
86
86
76
81
83
78
83
85
86
73
71
83
83
83
79
72
68
83
90...

Use ? to approximate σ. Use a 5% level of significance.
Data:
69
62
75
66
68
57
61
84
61
77
62
71
68
69
79
76
87
78
73
89
81
73
64
65
73
69
57
79
78
80
79
81
73
74
84
83
82
85
86
77
72
79
59
64
65
82
64
70
83
89
69
73
84
76
79
81
80
74
77
66
68
77
79
78
77

As part of its freshman orientation process, a college gives a
math placement exam to incoming freshmen. The math department is
interested in whether there is a statistically significant
difference in the average exam score for students in different
programs, at a level of α=0.01 . The exam scores for random samples
of science, engineering, humanities, and business majors are shown
in the following table. The math department has confirmed that the
samples were randomly selected and independent, that the...

The Test Scores for a Statistics course are given in the Excel
below.
The data (X1, X2, X3, X4) are for each student.
X1 = score on exam #1
X2 = score on exam #2
X3 = score on exam #3
X4 = score on final exam
Your professor wants to know if all tests are created equal.
What is the F-Stat?
EXAM1
EXAM2
EXAM3
FINAL
73
80
75
65.86667
93
88
93
80.16667
89
91
90
78
96
98...

The data file ExxamScores shows the 40 students
in a TOM 3010 course exxam scores for the Middtermm and Final
exxam. Is there statistically significant evidence to show that
students score lower on their final exxam than middtermm exxam?
Provide the p-value for this analysis.ROUND TO 4 DECIMAL
PLACES.
ExxamScores
Student ID #
Middtermmm
Final
56065
97
64
79499
95
85
59716
89
72
83504
79
64
77735
78
74
57760
87
93
78204
83
70
81177
94
79
54398...

1.A firms Supply and Demand equations are as follows: Supply: P
= 2Q - 70 Demand: P = -2Q + 130 Calculate the X and Y intercept of
Demand. Select one: a. P = $130, Qd = 65 b. P = $65, Qd = 130 c. P
= $70, Qd = 35 d. P = -$70, Qd = 35 e. None of the above
2.
Calculate the X and Y intercept of Supply.
Select one:
a. P = $70, Qs...

Suppose the market for corn is given by the following equations
for supply and demand:
QS = 2p − 2
QD = 13 − p
where Q is the quantity in millions of bushels per year and p is
the price.
Calculate the equilibrium price and quantity.
Sketch the supply and demand curves on a graph indicating the
equilibrium quantity and price.
Calculate the price-elasticity of demand and supply at the
equilibrium price/quantity.
The government judges the market...

Student Grades
Student
Test
Grade
1
76
62
2
84
90
3
79
68
4
88
84
5
76
58
6
66
79
7
75
73
8
94
93
9
66
65
10
92
86
11
80
53
12
87
83
13
86
49
14
63
72
15
92
87
16
75
89
17
69
81
18
92
94
19
79
78
20
60
71
21
68
84
22
71
74
23
61
74
24
68
54
25
76
97...

Refer to the accompanying data set and construct a 95%
confidence interval estimate of the mean pulse rate of adult
females; then do the same for adult males. Compare the results.
Males Females
81
82
72
94
52
57
59
66
51
54
62
80
52
77
74
85
51
89
62
57
73
35
61
64
62
87
80
74
80
79
63
62
63
67
97
76
43
60
85
65
72
86
66
85
73
69
72 ...

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