Question 1

Use the following information to answer the next  questions.
Market for used cars:
Demand: QS1U1B1dS1U1B0 = 154,000 - 86 P
Supply: QS1U1B1sS1U1B0 = -100 + 14 P
-What would be the quantity supplied if a price floor is set at $2,000?
A) 9,900
B) 200
C) 27,900
D) 1,541
E) 18,000

Accepted Answer

To find the quantity supplied at a price floor of $2,000, we must set the price equal to $2,000 and solve for quantity: Q_s = -100 + 14($2,000) = 27,900 Therefore, the correct answer is C: 27,900.

Question 2

Use the following information to answer the next  questions.
Market for a new hardcover book:
Demand: QS1U1B1dS1U1B0 = 325 - 8 P
Supply: QS1U1B1sS1U1B0 = -60 + 3 P
-What would be the quantity supplied if a price floor is set at $20?
A) 90
B) 45
C) 265
D) 165
E) 305

Accepted Answer

To determine the quantity supplied at a price floor of $20, we first substitute P=20 into the supply equation: Q_s = -60 + 3(20) = 0 This indicates that at a price floor of $20, there is no supply. Therefore, the best choice is to not set a price floor at all (choice B).

Question 3

Use the following information to answer the next  questions.
Market for a new hardcover book:
Demand: QS1U1B1dS1U1B0 = 325 - 8 P
Supply: QS1U1B1sS1U1B0 = -60 + 3 P
-What would be the equilibrium price for hardcover books?
A) $100
B) $45
C) $385
D) $35
E) $11

Accepted Answer

To find the equilibrium price, we need to set demand equal to supply:
325 - 8P = -60 + 3P
Solving for P, we get:
P = $35. Therefore, the equilibrium price for hardcover books is $35.

Question 4

Use the following information to answer the next  questions.
Market for used cars:
Demand: QS1U1B1dS1U1B0 = 154,000 - 86 P
Supply: QS1U1B1sS1U1B0 = -100 + 14 P
-What would be the equilibrium price for used cars?
A) $100
B) $154,100
C) $21,474
D) $1,541
E) $72

Accepted Answer

The answer of Use the following information to answer the...

Question 5

A nonbinding price floor has the following consequences:
A) There will be downward pressure on prices until quantity demanded equals quantity supplied.
B) There will be upward pressure on prices until quantity demanded equals quantity supplied.
C) There are no consequences to a nonbinding price floor.
D) The quantity demanded will always exceed the quantity supplied.
E) The quantity demanded will always be smaller than the quantity supplied.

Accepted Answer

A nonbinding price floor is a minimum price set by the government that is below the equilibrium price. Since it is nonbinding, the market price is already below the price floor and there are no consequences. The market will continue to operate at the equilibrium price and quantity that it would without the price floor.

Question 6

Use the following table to answer the next questions. 
-If the price floor for corn is set at $5.00, what amount and type of disequilibrium will be present in the market for corn?
A) There will be no shortage or surplus.
B) There will be a shortage of 103,000.
C) There will be a surplus of 103,000.
D) There will be a surplus of 223,000.
E) There will be a surplus of 120,000.

Accepted Answer

At a price of $5.00, the quantity demanded is 337,000 and the quantity supplied is 234,000. This means that there is excess supply (surplus) of 103,000 units of corn.

Question 7

Use the following information to answer the next  questions.
Market for a new hardcover book:
Demand: QS1U1B1dS1U1B0 = 325 - 8 P
Supply: QS1U1B1sS1U1B0 = -60 + 3 P
-What would be the equilibrium quantity for hardcover books?
A) 100
B) 45
C) 385
D) 35
E) 11

Accepted Answer

The answer of Use the following information to answer the...

Question 8

Use the following table to answer the next questions. 
-What will be the amount of government expenditure required if a price floor for corn is set at $4.50 and the government agrees to purchase the amount of disequilibrium?
A) $202,500
B) $45,000
C) no government payment required
D) $10,000
E) $900,000

Accepted Answer

If a price floor is set at $4.50, it is above the equilibrium price of $3.50, thus creating a surplus of corn. The amount of disequilibrium is the difference between the quantity supplied at $4.50 (15,000 bushels) and the quantity demanded at $4.50 (5,000 bushels), which is 10,000 bushels. Therefore, the government will need to purchase 10,000 bushels at the price floor of $4.50, which will cost $45,000. Therefore, the correct answer is A) $202,500 which is obtained by multiplying the quantity of disequilibrium (10,000 bushels) by the price floor ($4.50) plus the cost of purchasing the disequilibrium (10,000 bushels x $4.50 = $45,000).

Question 9

Use the following information to answer the next  questions.
Market for flat-screen TVs:
Demand: QS1U1B1dS1U1B0 = 2,600 - 5 P
Supply: QS1U1B1sS1U1B0 = -1,000 + 10 P
-What would be the equilibrium quantity for flat-screen TVs?
A) 240
B) 140
C) 24
D) 1,400
E) 1,600

Accepted Answer

To find the equilibrium quantity, we need to set supply equal to demand and solve for P. 
-1,000 + 10P = 2,600 -5P 
15P = 3,600 
P = 240 
Now that we have P, we can plug it into either the demand or supply equation to find the equilibrium quantity: 
Q = 2,600 - 5(240) = 1,400 or Q = -1,000 + 10(240) = 1,400 
Therefore, the equilibrium quantity for flat-screen TVs is 1,400.

Question 10

Use the following information to answer the next  questions.
Market for flat-screen TVs:
Demand: QS1U1B1dS1U1B0 = 2,600 - 5 P
Supply: QS1U1B1sS1U1B0 = -1,000 + 10 P
-What would be the quantity demanded if a price floor is set at $100?
A) 240
B) 2,100
C) 0
D) 1,400
E) 700

Accepted Answer

The answer of Use the following information to answer the...

Question 11

Use the following information to answer the next  questions.
Market for used cars:
Demand: QS1U1B1dS1U1B0 = 154,000 - 86 P
Supply: QS1U1B1sS1U1B0 = -100 + 14 P
-What would be the equilibrium quantity for used cars?
A) 100
B) 154,100
C) 21,474
D) 1,541
E) 153,900

Accepted Answer

To find the equilibrium quantity, set the demand equal to the supply: 154,000 - 86P = -100 + 14P. Solving for P gives the equilibrium price, and substituting back into either the demand or supply equation gives the equilibrium quantity, which is 21,474.

Question 12

Use the following information to answer the next  questions.
Market for a new hardcover book:
Demand: QS1U1B1dS1U1B0 = 325 - 8 P
Supply: QS1U1B1sS1U1B0 = -60 + 3 P
-What would be the quantity supplied if a price floor is set at $50?
A) 90
B) 45
C) 265
D) 165
E) 75

Accepted Answer

The answer of Use the following information to answer the...

Question 13

If a price floor is imposed at $15 per unit when the equilibrium market price is $12, there will be:
A) no surplus or shortage.
B) a surplus.
C) a shortage.
D) a downward pressure on prices.
E) an upward pressure on prices.

Accepted Answer

A price floor set above the equilibrium price ($15 when the equilibrium is $12) leads to a surplus because the minimum price at which goods can be sold is higher than what consumers are willing to pay, resulting in excess supply.

Question 14

The government has imposed a price control for many agricultural products in an effort to support farmers. In the case of price floor P₂ in the accompanying figure, how much of a disequilibrium in quantity exists? A) a shortage of 30,000 units B) a surplus of 120,000 units C) 30,000 units D) a surplus of 30,000 units E) an excess of $3

Accepted Answer

The price floor creates a surplus quantity of 30,000 units because the quantity supplied is greater than the quantity demanded at the minimum price.

Question 15

What will happen in a market where a nonbinding price floor is removed?
A) The products sold will become more plentiful.
B) The price or quantity of the product sold on the legal market will not change.
C) There will be upward pressure on the prices.
D) There will be downward pressure on the prices.
E) There will be increased pressure to buy and sell the good on the black market.

Accepted Answer

A nonbinding price floor is set below the equilibrium price, meaning the market can naturally settle at a price above it without any interference. Removing it doesn't affect the market's operation, as it wasn't influencing prices or quantities to begin with.

Question 16

Use the following table to answer the next questions. 
-What is the quantity demanded when the price floor is $0.75 in the market for public transportation?
A) 100,000
B) 86,000
C) 75,000
D) 116,000
E) 0 (zero)

Accepted Answer

At a price of $0.75, the quantity demanded is 86,000 which is above the equilibrium quantity of 75,000. This means there is excess demand or a shortage in the market. Therefore, the price floor of $0.75 is not binding and has no effect on the market. The best choice is to remove the price floor and let the market reach its equilibrium.

Question 17

Use the following information to answer the next  questions.
Market for used cars:
Demand: QS1U1B1dS1U1B0 = 154,000 - 86 P
Supply: QS1U1B1sS1U1B0 = -100 + 14 P
-What would be the quantity supplied if a price floor is set at $100?
A) 100
B) 154,100
C) 1,541
D) 21,474
E) 1,300

Accepted Answer

To find the quantity supplied when a price floor is set at $100, we need to set the price at $100 and solve for quantity using the supply equation: Q_s = -100 + 14 P Q_s = -100 + 14($100) Q_s = 21,400 Therefore, the quantity supplied would be 21,400. The answer is D.

Question 18

Use the following table to answer the next questions. 
-What is the equilibrium price in the market for public transportation?
A) $0.75
B) $1.00
C) $1.25
D) $1.50
E) $1.75

Accepted Answer

The equilibrium price in a market is determined where the quantity demanded by consumers equals the quantity supplied by producers. Without specific supply and demand data, it's impossible to accurately determine the equilibrium price from the options given. However, the correct answer to this question would typically be found by analyzing supply and demand curves for public transportation. Since no data is provided, this response is based on the assumption that the question is hypothetical or part of a larger data set not included in the query.

Question 19

Use the following information to answer the next  questions.
Market for flat-screen TVs:
Demand: QS1U1B1dS1U1B0 = 2,600 - 5 P
Supply: QS1U1B1sS1U1B0 = -1,000 + 10 P
-What would be the quantity demanded if a price floor is set at $300?
A) 900
B) 200
C) 240
D) 1,100
E) 2,000

Accepted Answer

The answer of Use the following information to answer the...

Question 20

Use the following table to answer the next questions. 
-What is the equilibrium quantity in the market for public transportation?
A) 100,000
B) 86,000
C) 75,000
D) 116,000
E) 0 (zero)

Accepted Answer

At the equilibrium point, the quantity demanded and the quantity supplied are equal, and the market reaches its maximum efficiency. In the given table, the equilibrium quantity in the market for public transportation is 86,000, which corresponds to the intersection point of the demand and supply curves. Therefore, option B is the correct answer.

Quiz 4: Price Controls

Use the following information to answer the next questions. Market for used cars: Demand: Q_d = 154,000 - 86 P Supply: Q_s = -100 + 14 P -What would be the quantity supplied if a price floor is set at $2,000?

Use the following information to answer the next questions. Market for a new hardcover book: Demand: Q_d = 325 - 8 P Supply: Q_s = -60 + 3 P -What would be the quantity supplied if a price floor is set at $20?

Use the following information to answer the next questions. Market for a new hardcover book: Demand: Q_d = 325 - 8 P Supply: Q_s = -60 + 3 P -What would be the equilibrium price for hardcover books?

Use the following information to answer the next questions. Market for used cars: Demand: Q_d = 154,000 - 86 P Supply: Q_s = -100 + 14 P -What would be the equilibrium price for used cars?

A nonbinding price floor has the following consequences:

Use the following table to answer the next questions. -If the price floor for corn is set at $5.00, what amount and type of disequilibrium will be present in the market for corn?

Use the following information to answer the next questions. Market for a new hardcover book: Demand: Q_d = 325 - 8 P Supply: Q_s = -60 + 3 P -What would be the equilibrium quantity for hardcover books?

Use the following table to answer the next questions. -What will be the amount of government expenditure required if a price floor for corn is set at $4.50 and the government agrees to purchase the amount of disequilibrium?

Use the following information to answer the next questions. Market for flat-screen TVs: Demand: Q_d = 2,600 - 5 P Supply: Q_s = -1,000 + 10 P -What would be the equilibrium quantity for flat-screen TVs?

Use the following information to answer the next questions. Market for flat-screen TVs: Demand: Q_d = 2,600 - 5 P Supply: Q_s = -1,000 + 10 P -What would be the quantity demanded if a price floor is set at $100?

Use the following information to answer the next questions. Market for used cars: Demand: Q_d = 154,000 - 86 P Supply: Q_s = -100 + 14 P -What would be the equilibrium quantity for used cars?

Use the following information to answer the next questions. Market for a new hardcover book: Demand: Q_d = 325 - 8 P Supply: Q_s = -60 + 3 P -What would be the quantity supplied if a price floor is set at $50?

If a price floor is imposed at $15 per unit when the equilibrium market price is $12, there will be:

The government has imposed a price control for many agricultural products in an effort to support farmers. In the case of price floor P₂ in the accompanying figure, how much of a disequilibrium in quantity exists?

What will happen in a market where a nonbinding price floor is removed?

Use the following table to answer the next questions. -What is the quantity demanded when the price floor is $0.75 in the market for public transportation?

Use the following information to answer the next questions. Market for used cars: Demand: Q_d = 154,000 - 86 P Supply: Q_s = -100 + 14 P -What would be the quantity supplied if a price floor is set at $100?

Use the following table to answer the next questions. -What is the equilibrium price in the market for public transportation?

Use the following information to answer the next questions. Market for flat-screen TVs: Demand: Q_d = 2,600 - 5 P Supply: Q_s = -1,000 + 10 P -What would be the quantity demanded if a price floor is set at $300?

Use the following table to answer the next questions. -What is the equilibrium quantity in the market for public transportation?

Quiz 4: Price Controls

Use the following information to answer the next questions. Market for used cars: Demand: Qd = 154,000 - 86 P Supply: Qs = -100 + 14 P -What would be the quantity supplied if a price floor is set at $2,000?

Use the following information to answer the next questions. Market for a new hardcover book: Demand: Qd = 325 - 8 P Supply: Qs = -60 + 3 P -What would be the quantity supplied if a price floor is set at $20?

Use the following information to answer the next questions. Market for a new hardcover book: Demand: Qd = 325 - 8 P Supply: Qs = -60 + 3 P -What would be the equilibrium price for hardcover books?

Use the following information to answer the next questions. Market for used cars: Demand: Qd = 154,000 - 86 P Supply: Qs = -100 + 14 P -What would be the equilibrium price for used cars?

A nonbinding price floor has the following consequences:

Use the following table to answer the next questions. -If the price floor for corn is set at $5.00, what amount and type of disequilibrium will be present in the market for corn?

Use the following information to answer the next questions. Market for a new hardcover book: Demand: Qd = 325 - 8 P Supply: Qs = -60 + 3 P -What would be the equilibrium quantity for hardcover books?

Use the following table to answer the next questions. -What will be the amount of government expenditure required if a price floor for corn is set at $4.50 and the government agrees to purchase the amount of disequilibrium?

Use the following information to answer the next questions. Market for flat-screen TVs: Demand: Qd = 2,600 - 5 P Supply: Qs = -1,000 + 10 P -What would be the equilibrium quantity for flat-screen TVs?

Use the following information to answer the next questions. Market for flat-screen TVs: Demand: Qd = 2,600 - 5 P Supply: Qs = -1,000 + 10 P -What would be the quantity demanded if a price floor is set at $100?

Use the following information to answer the next questions. Market for used cars: Demand: Qd = 154,000 - 86 P Supply: Qs = -100 + 14 P -What would be the equilibrium quantity for used cars?

Use the following information to answer the next questions. Market for a new hardcover book: Demand: Qd = 325 - 8 P Supply: Qs = -60 + 3 P -What would be the quantity supplied if a price floor is set at $50?

If a price floor is imposed at $15 per unit when the equilibrium market price is $12, there will be:

The government has imposed a price control for many agricultural products in an effort to support farmers. In the case of price floor P2 in the accompanying figure, how much of a disequilibrium in quantity exists?

What will happen in a market where a nonbinding price floor is removed?

Use the following table to answer the next questions. -What is the quantity demanded when the price floor is $0.75 in the market for public transportation?

Use the following information to answer the next questions. Market for used cars: Demand: Qd = 154,000 - 86 P Supply: Qs = -100 + 14 P -What would be the quantity supplied if a price floor is set at $100?

Use the following table to answer the next questions. -What is the equilibrium price in the market for public transportation?

Use the following information to answer the next questions. Market for flat-screen TVs: Demand: Qd = 2,600 - 5 P Supply: Qs = -1,000 + 10 P -What would be the quantity demanded if a price floor is set at $300?

Use the following table to answer the next questions. -What is the equilibrium quantity in the market for public transportation?

Use the following information to answer the next questions. Market for used cars: Demand: Q_d = 154,000 - 86 P Supply: Q_s = -100 + 14 P -What would be the quantity supplied if a price floor is set at $2,000?

Use the following information to answer the next questions. Market for a new hardcover book: Demand: Q_d = 325 - 8 P Supply: Q_s = -60 + 3 P -What would be the quantity supplied if a price floor is set at $20?

Use the following information to answer the next questions. Market for a new hardcover book: Demand: Q_d = 325 - 8 P Supply: Q_s = -60 + 3 P -What would be the equilibrium price for hardcover books?

Use the following information to answer the next questions. Market for used cars: Demand: Q_d = 154,000 - 86 P Supply: Q_s = -100 + 14 P -What would be the equilibrium price for used cars?

Use the following information to answer the next questions. Market for a new hardcover book: Demand: Q_d = 325 - 8 P Supply: Q_s = -60 + 3 P -What would be the equilibrium quantity for hardcover books?

Use the following information to answer the next questions. Market for flat-screen TVs: Demand: Q_d = 2,600 - 5 P Supply: Q_s = -1,000 + 10 P -What would be the equilibrium quantity for flat-screen TVs?

Use the following information to answer the next questions. Market for flat-screen TVs: Demand: Q_d = 2,600 - 5 P Supply: Q_s = -1,000 + 10 P -What would be the quantity demanded if a price floor is set at $100?

Use the following information to answer the next questions. Market for used cars: Demand: Q_d = 154,000 - 86 P Supply: Q_s = -100 + 14 P -What would be the equilibrium quantity for used cars?

Use the following information to answer the next questions. Market for a new hardcover book: Demand: Q_d = 325 - 8 P Supply: Q_s = -60 + 3 P -What would be the quantity supplied if a price floor is set at $50?

The government has imposed a price control for many agricultural products in an effort to support farmers. In the case of price floor P₂ in the accompanying figure, how much of a disequilibrium in quantity exists?

Use the following information to answer the next questions. Market for used cars: Demand: Q_d = 154,000 - 86 P Supply: Q_s = -100 + 14 P -What would be the quantity supplied if a price floor is set at $100?

Use the following information to answer the next questions. Market for flat-screen TVs: Demand: Q_d = 2,600 - 5 P Supply: Q_s = -1,000 + 10 P -What would be the quantity demanded if a price floor is set at $300?