Question 1

Use the following information to answer the following questions.
Market for used cars:
Demand: QS1U1B1dS1U1B0 = 154,000 - 86P
Supply: QS1U1B1sS1U1B0 = -100 + 14P
-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 2

What will happen in a market where a nonbinding price ceiling is removed?
A) There will be downward pressure on the price in the legal market.
B) The products sold will improve in quality and become more plentiful.
C) Sellers will face a reduced incentive to sell the products.
D) The price and quantity will not change in the legal market.
E) There will be increased pressure to buy and sell the goods on the black market.

Accepted Answer

A nonbinding price ceiling is set above the equilibrium price, so removing it does not affect the market price or quantity.

Question 3

Setting a price ceiling below the equilibrium price can result in
A) a surplus,where the quantity demanded exceeds the quantity supplied.
B) a shortage,where the quantity demanded exceeds the quantity supplied.
C) a surplus,where the quantity supplied exceeds the quantity demanded.
D) a shortage,where the quantity supplied exceeds the quantity demanded.
E) no impact on the quantity demanded or on the quantity supplied.

Accepted Answer

Setting a price ceiling below equilibrium price creates a shortage, as the demand for the product exceeds the supply. This is because the lower price makes consumers want to buy more, but at the same time, suppliers are unwilling to produce as many units due to the lower profit margin. Thus, a shortage occurs where the quantity demanded exceeds the quantity supplied.

Question 4

Use the following information to answer the following questions.
Market for used cars:
Demand: QS1U1B1dS1U1B0 = 154,000 - 86P
Supply: QS1U1B1sS1U1B0 = -100 + 14P
-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, substitute P = 2000 into the supply equation: QS = -100 + 14(2000) = -100 + 28,000 = 27,900.

Question 5

Use the following information to answer the following questions.
Market for flat-screen TVs:
Demand: QS1U1B1dS1U1B0 = 2,600 - 5P
Supply: QS1U1B1sS1U1B0 = -1,000 + 10P
-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 the demand and supply equations equal to each other and solve for P: 2,600 - 5P = -1,000 + 10P 3,600 = 15P P = 240 Now, we can substitute P back into either the demand or supply equation to find the equilibrium quantity: Q_d = 2,600 - 5(240) = 1,400 Therefore, the equilibrium quantity for flat-screen TVs is 1,400.

Question 6

Use the following information to answer the following questions.
Market for flat-screen TVs:
Demand: QS1U1B1dS1U1B0 = 2,600 - 5P
Supply: QS1U1B1sS1U1B0 = -1,000 + 10P
-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 7

Use the following information to answer the following questions.
Market for used cars:
Demand: QS1U1B1dS1U1B0 = 154,000 - 86P
Supply: QS1U1B1sS1U1B0 = -100 + 14P
-What would be the quantity supplied if a price ceiling is set at $2,000?
A) 100
B) 154,100
C) 27,900
D) 21,474
E) 18,000

Accepted Answer

To find the quantity supplied at a price ceiling of $2,000, we need to set Q_d = Q_s and solve for P. 154,000 - 86P = -100 + 14P 240P = 154,100 P = $642.50 Now, we can substitute this price into either the demand or supply function to find the quantity. Q_d = 154,000 - 86($642.50) = $96,550 Q_s = -100 + 14($642.50) = $8,925 The quantity supplied is the lower value of the two, which is 8,925. Therefore, the best choice is C.

Question 8

Use the following information to answer the following questions.
Market for a new hardcover book:
Demand: QS1U1B1dS1U1B0 = 325 - 8P
Supply: QS1U1B1sS1U1B0 = -60 + 3P
-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 9

Use the following information to answer the following questions.
Market for flat-screen TVs:
Demand: QS1U1B1dS1U1B0 = 2,600 - 5P
Supply: QS1U1B1sS1U1B0 = -1,000 + 10P
-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 10

Use the following information to answer the following questions.
Market for used cars:
Demand: QS1U1B1dS1U1B0 = 154,000 - 86P
Supply: QS1U1B1sS1U1B0 = -100 + 14P
-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 at a price floor of $100, we need to set the price equal to or greater than $100 in the supply equation:
-100 + 14(100) = 1,300
Therefore, the quantity supplied at a price floor of $100 would be 1,300. Therefore, choice E is incorrect. The demand equation shows that at a price of $100, the quantity demanded would be:
154,000 - 86(100) = 65,400
This means that the quantity demanded is less than the quantity supplied, so there would be a surplus of cars in the market. The only answer choice that reflects this is D, which corresponds to the quantity supplied of 21,474. The surplus would be the difference between the quantity supplied and the quantity demanded:
21,474 - 65,400 = -43,926 
This negative number represents the surplus amount of cars that would not be sold at the price floor. Answer choices A, B, and C are incorrect.

Question 11

Which of the following is an accurate statement about the consequence of nonbinding price ceilings?
A) They prevent the seller from receiving the equilibrium price.
B) They require the seller to advertise the product at the equilibrium price.
C) They create a surplus in the legal market.
D) They do not change the quantity of goods bought or sold in the legal market.
E) They increase the quantity demanded of the good in question.

Accepted Answer

Nonbinding price ceilings do not affect the market outcome as they are set above the equilibrium price, and therefore, do not affect the behavior of buyers and sellers in the market. Thus, the quantity of goods bought or sold in the market is not affected. They also do not create a surplus or increase the quantity demanded, as there is no change in the actual market outcome. The seller is still able to receive the equilibrium price or higher, and there is no requirement for the seller to advertise at the equilibrium price or lower.

Question 12

If a price ceiling 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

Since the price ceiling is set above the equilibrium price, it does not affect the market, and there will be no surplus or shortage as the market can operate at its equilibrium.

Question 13

Use the following information to answer the following questions.
Market for used cars:
Demand: QS1U1B1dS1U1B0 = 154,000 - 86P
Supply: QS1U1B1sS1U1B0 = -100 + 14P
-What would be the quantity demanded if a price ceiling is set at $1,000?
A) 500
B) 54,100
C) 68,000
D) 13,900
E) 21,474

Accepted Answer

To find the quantity demanded at a price ceiling of $1,000, substitute $1,000 for P in the demand equation: 154,000 - 86(1,000) = 154,000 - 86,000 = 68,000.

Question 14

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

Accepted Answer

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

Question 15

Use the following information to answer the following questions.
Market for flat-screen TVs:
Demand: QS1U1B1dS1U1B0 = 2,600 - 5P
Supply: QS1U1B1sS1U1B0 = -1,000 + 10P
-What would be the quantity supplied if a price ceiling is set at $400?
A) 600
B) 240
C) 0
D) 3,000
E) 2,400

Accepted Answer

At a price ceiling of $400, the quantity supplied is calculated using the supply equation: QS = -1,000 + 10(400) = 3,000.

Question 16

Use the following information to answer the following questions.
Market for a new hardcover book:
Demand: QS1U1B1dS1U1B0 = 325 - 8P
Supply: QS1U1B1sS1U1B0 = -60 + 3P
-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

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

Question 17

Use the following information to answer the following questions.
Market for a new hardcover book:
Demand: QS1U1B1dS1U1B0 = 325 - 8P
Supply: QS1U1B1sS1U1B0 = -60 + 3P
-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

At a price floor of $50, the quantity supplied is determined by the supply equation: QS1U1B1sS1U1B0 = -60 + 3P. Plugging in P = 50, we get QS1U1B1sS1U1B0 = -60 + 3(50) = 90.

Question 18

Use the following information to answer the following questions.
Market for used cars:
Demand: QS1U1B1dS1U1B0 = 154,000 - 86P
Supply: QS1U1B1sS1U1B0 = -100 + 14P
-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 19

Use the following information to answer the following questions.
Market for a new hardcover book:
Demand: QS1U1B1dS1U1B0 = 325 - 8P
Supply: QS1U1B1sS1U1B0 = -60 + 3P
-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 and solve for P:
325 - 8P = -60 + 3P
Combining like terms:
385 = 11P
Dividing both sides by 11:
P = 35. Therefore, the equilibrium price for hardcover books is $35.

Question 20

Use the following information to answer the following questions.
Market for a new hardcover book:
Demand: QS1U1B1dS1U1B0 = 325 - 8P
Supply: QS1U1B1sS1U1B0 = -60 + 3P
-What would be the quantity supplied if a price ceiling is set at $50?
A) 90
B) 35
C) 265
D) 165
E) 75

Accepted Answer

The quantity supplied is determined by the supply function, which is QS1U1B1sS1U1B0 = -60 + 3P. If the price ceiling is set at $50, then the quantity supplied will be QS1U1B1sS1U1B0 = -60 + 3(50) = 90.

Quiz 6: Price Controls

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

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

Setting a price ceiling below the equilibrium price can result in

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

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

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

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

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

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

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

Which of the following is an accurate statement about the consequence of nonbinding price ceilings?

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

Use the following information to answer the following questions. Market for used cars: Demand: Q_d = 154,000 - 86P Supply: Q_s = -100 + 14P -What would be the quantity demanded if a price ceiling is set at $1,000?

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

Use the following information to answer the following questions. Market for flat-screen TVs: Demand: Q_d = 2,600 - 5P Supply: Q_s = -1,000 + 10P -What would be the quantity supplied if a price ceiling is set at $400?

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

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

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

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

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

Quiz 6: Price Controls

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

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

Setting a price ceiling below the equilibrium price can result in

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

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

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

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

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

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

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

Which of the following is an accurate statement about the consequence of nonbinding price ceilings?

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

Use the following information to answer the following questions. Market for used cars: Demand: Qd = 154,000 - 86P Supply: Qs = -100 + 14P -What would be the quantity demanded if a price ceiling is set at $1,000?

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

Use the following information to answer the following questions. Market for flat-screen TVs: Demand: Qd = 2,600 - 5P Supply: Qs = -1,000 + 10P -What would be the quantity supplied if a price ceiling is set at $400?

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

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

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

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

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

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

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

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

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

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

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

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

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

Use the following information to answer the following questions. Market for used cars: Demand: Q_d = 154,000 - 86P Supply: Q_s = -100 + 14P -What would be the quantity demanded if a price ceiling is set at $1,000?

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

Use the following information to answer the following questions. Market for flat-screen TVs: Demand: Q_d = 2,600 - 5P Supply: Q_s = -1,000 + 10P -What would be the quantity supplied if a price ceiling is set at $400?

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

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

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

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

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