Deck 16: Extension: A: Equilibrium

Question 1

Suppose that King Kanuta from demands that each of his subjects give him 4 coconuts for every coconut that they consume.The king puts all of the coconuts that he collects in a large pile and burns them.The supply of coconuts is given by S(p_s)= 100p_s, where p_s is the price received by suppliers.The demand for coconuts by the king's subjects is given by D(p_d)= 2,080 - 100p_d, where p_d is the price paid by consumers.In equilibrium, the price received by suppliers will be

A)$4.
B)$10.40.
C)$52.
D)$6.
E)None of the above.

Answer 1

$4.

Question 2

the demand function for Schrecklichs is 200 - 4P_S - 2P_L and the demand function for LaMerdes is 200 - 3P_L - P_S, where P_S and P_L are respectively the price of Schrecklichs and LaMerdes.If the world supply of Schrecklichs is 110 and the world supply of LaMerdes is 110, then the equilibrium price of Schrecklichs is

A)$27.
B)$22.50.
C)$9.
D)$36.
E)$18.

Answer 2

$9.

Question 3

The inverse demand function for grapefruit is defined by the equation p = 136 - 4q, where q is the number of units sold.The inverse supply function is defined by p = 16 + 4q.A tax of $16 is imposed on suppliers for each unit of grapefruit that they sell.When the tax is imposed, the quantity of grapefruit sold falls to

A)13
B)11
C)11.
D)15
E)14.

Answer 3

13

Question 4

In a crowded city far away, the civic authorities decided that rents were too high.The long-run supply function of two-room rental apartments was given by q = 18 + 3p and the long-run demand function was given by q = 267 - 4p, where p is the rental rate in crowns per week.The authorities made it illegal to rent an apartment for more than 27 crowns per week.To avoid a housing shortage, the authorities agreed to pay landlords enough of a subsidy to make supply equal to demand.How much would the weekly subsidy per apartment have to be to eliminate excess demand at the ceiling price?

A)40 crowns
B)10 crowns
C)17 crowns
D)20 crowns
E)30 crowns

Question 5

The inverse demand function for grapefruit is defined by the equation p = 317 - 6q, where q is the number of units sold.The inverse supply function is defined by p = 5 + 6q.A tax of $48 is imposed on suppliers for each unit of grapefruit that they sell.When the tax is imposed, the quantity of grapefruit sold falls to

A)20
B)18
C)22
D)26
E)24.

Question 6

Suppose that King Kanuta from demands that each of his subjects give him 3 coconuts for every coconut that they consume.The king puts all of the coconuts that he collects in a large pile and burns them.The supply of coconuts is given by S(p_s)= 100p_s, where p_s is the price received by suppliers.The demand for coconuts by the king's subjects is given by D(p_d)= 7,650 - 100p_d, where p_d is the price paid by consumers.In equilibrium, the price received by suppliers will be

A)$153.
B)$18.
C)$27.
D)$38.25.
E)None of the above.

Question 7

the demand function for Schrecklichs is 200 - 4P_S - 2P_L and the demand function for LaMerdes is 200 - 3P_L - P_S, where P_S and P_L are respectively the price of Schrecklichs and LaMerdes.If the world supply of Schrecklichs is 140 and the world supply of LaMerdes is 120, then the equilibrium price of Schrecklichs is

A)$2.
B)$28.
C)$26.
D)$15.
E)$4.

Question 8

Suppose that King Kanuta demands that each of his subjects give him 2 coconuts for every coconut that they consume.The king puts all of the coconuts that he collects in a large pile and burns them.The supply of coconuts is given by S(p_s)= 100p_s, where p_s is the price received by suppliers.The demand for coconuts by the king's subjects is given by D(p_d)= 2,666.67 - 100p_d, where p_d is the price paid by consumers.In equilibrium, the price received by suppliers will be

A)$8.
B)$12.
C)$13.33.
D)$40.
E)None of the above.

Question 9

In a crowded city far away, the civic authorities decided that rents were too high.The long-run supply function of two-room rental apartments was given by q = 17 + 4p and the long-run demand function was given by q = 304 - 5p, where p is the rental rate in crowns per week.The authorities made it illegal to rent an apartment for more than 27 crowns per week.To avoid a housing shortage, the authorities agreed to pay landlords enough of a subsidy to make supply equal to demand.How much would the weekly subsidy per apartment have to be to eliminate excess demand at the ceiling price?

A)5.50 crowns
B)8 crowns
C)11 crowns
D)22 crowns
E)16.50 crowns

Question 10

the demand function for Schrecklichs is 200 - 4P_S -2P_L and the demand function for LaMerdes is 200 - 3P_L - P_S, where P_S and P_L are respectively the price of Schrecklichs and LaMerdes.If the world supply of Schrecklichs is 140 and the world supply of LaMerdes is 180, then the equilibrium price of Schrecklichs is

A)$15.
B)$14.
C)$2.
D)$16.
E)$28.

Question 11

The inverse demand function for grapefruit is defined by the equation p = 122 - 4q, where q is the number of units sold.The inverse supply function is defined by p = 8 + 2q.A tax of $12 is imposed on suppliers for each unit of grapefruit that they sell.When the tax is imposed, the quantity of grapefruit sold falls to

A)15
B)13
C)19
D)17
E)18.

Question 12

In a crowded city far away, the civic authorities decided that rents were too high.The long-run supply function of two-room rental apartments was given by q = 20 + 5p and the long-run demand function was given by q = 271 - 2p, where p is the rental rate in crowns per week.The authorities made it illegal to rent an apartment for more than 23 crowns per week.To avoid a housing shortage, the authorities agreed to pay landlords enough of a subsidy to make supply equal to demand.How much would the weekly subsidy per apartment have to be to eliminate excess demand at the ceiling price?

A)9 crowns
B)18 crowns
C)36 crowns
D)15 crowns
E)27 crowns

Question 13

In a crowded city far away, the civic authorities decided that rents were too high.The long-run supply function of two-room rental apartments was given by q = 14 + 3p and the long-run demand function was given by q = 260 - 4p, where p is the rental rate in crowns per week.The authorities made it illegal to rent an apartment for more than 30 crowns per week.To avoid a housing shortage, the authorities agreed to pay landlords enough of a subsidy to make supply equal to demand.How much would the weekly subsidy per apartment have to be to eliminate excess demand at the ceiling price?

A)9 crowns
B)24 crowns
C)12 crowns
D)6 crowns
E)18 crowns

Question 14

the demand function for Schrecklichs is 200 - 4P_S - 2P_L and the demand function for LaMerdes is 200 - 3P_L - P_S, where P_S and P_L are respectively the price of Schrecklichs and LaMerdes.If the world supply of Schrecklichs is 130 and the world supply of LaMerdes is 120, then the equilibrium price of Schrecklichs is

A)$5.
B)$17.50.
C)$30.
D)$25.
E)$10.

Question 15

Suppose that King Kanuta demands that each of his subjects give him 1 coconuts for every coconut that they consume.The king puts all of the coconuts that he collects in a large pile and burns them.The supply of coconuts is given by S(p_s)= 100p_s, where p_s is the price received by suppliers.The demand for coconuts by the king's subjects is given by D(p_d)= 4,000 - 100p_d, where p_d is the price paid by consumers.In equilibrium, the price received by suppliers will be

A)$24.
B)$20.
C)$40.
D)$16.
E)None of the above.

Question 16

Suppose that King Kanuta demands that each of his subjects give him 4 coconuts for every coconut that they consume.The king puts all of the coconuts that he collects in a large pile and burns them.The supply of coconuts is given by S(p_s)= 100p_s, where p_s is the price received by suppliers.The demand for coconuts by the king's subjects is given by D(p_d)= 10,400 - 100p_d, where p_d is the price paid by consumers.In equilibrium, the price received by suppliers will be

A)$20.
B)$52.
C)$30.
D)$260.
E)None of the above.

Question 17

The inverse demand function for grapefruit is defined by the equation p = 145 - 6q, where q is the number of units sold.The inverse supply function is defined by p = 5 + 4q.A tax of $20 is imposed on suppliers for each unit of grapefruit that they sell.When the tax is imposed, the quantity of grapefruit sold falls to

A)9
B)10
C)14
D)12
E)13.

Question 18

the demand function for Schrecklichs is 200 - 4P_S - 2P_L and the demand function for LaMerdes is 200 - 3P_L - P_S, where P_S and P_L are respectively the price of Schrecklichs and LaMerdes.If the world supply of Schrecklichs is 150 and the world supply of LaMerdes is 150, then the equilibrium price of Schrecklichs is

A)$5.
B)$20.
C)$15.
D)$12.50.
E)$10.

Question 19

The inverse demand function for grapefruit is defined by the equation p = 282 - 9q, where q is the number of units sold.The inverse supply function is defined by p = 7 + 2q.A tax of $22 is imposed on suppliers for each unit of grapefruit that they sell.When the tax is imposed, the quantity of grapefruit sold falls to

A)25
B)14
C)21
D)23
E)24.

Question 20

In a crowded city far away, the civic authorities decided that rents were too high.The long-run supply function of two-room rental apartments was given by q = 15 + 3p and the long-run demand function was given by q = 237 - 3p, where p is the rental rate in crowns per week.The authorities made it illegal to rent an apartment for more than 30 crowns per week.To avoid a housing shortage, the authorities agreed to pay landlords enough of a subsidy to make supply equal to demand.How much would the weekly subsidy per apartment have to be to eliminate excess demand at the ceiling price?

A)14 crowns
B)7 crowns
C)11 crowns
D)28 crowns
E)21 crowns