HomeworkLib
Question


Question 20 3 pts Suppose the price of a bicycle is $45. If the government sets a price ceiling of $50 on bicycles, what woul
business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Sol :4

Considering that price ceilings only affect the price when the equilibrium price is higher than the ceiling price. If the ceiling is higher than the equilibrium price then the price ceiling would not impact the equilibrium price. Hence there will be no impact on the demand and supply and no deadweight loss will be created.

0 0
Add a comment
Know the answer?
Add Answer to:
Question 20 3 pts Suppose the price of a bicycle is $45. If the government sets...
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. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • if government were to impose a price ceiling or 6, which statement is correct Question 19...

    if government were to impose a price ceiling or 6, which statement is correct Question 19 1 pts If the government were to impose a price celling of s6, which statement is correct sis ZS12 $6 $3 10 20 30 50 QUANTITY 0 There would be a shortage of 20 units and a deadweight loss of 30 O There would be a surplus of 20 units and Consumer Surplus will be smaller than before the price ceiling The price ceiling...

  • The government sets a price ceiling for health insurance premiums, which is below the equilibrium price....

    The government sets a price ceiling for health insurance premiums, which is below the equilibrium price. As a result, a. The health insurance market will be efficient. b. A deadweight loss will be created. c. An excess surplus of health insurance policies will be created. d. The price ceiling will be ineffective. e. None of the above answers is correct.

  • Suppose we have the following market supply and demand schedules for bicycles: 1.1. Plot the supply curve and the de...

    Suppose we have the following market supply and demand schedules for bicycles: 1.1. Plot the supply curve and the demand curve for bicycles. 1.2. What is the equilibrium price of bicycles? 1.3. What is the equilibrium quantity of bicycles? 1.4. If the price of bicycles were $100. Is there a surplus or a shortage? How many units of surplus or shortage are there? Will this cause the price to rise or fall? 1.5. Ifthepriceofbicycleswere$400, is there a surplus or a...

  • QUESTION 4 Suppose instead that the government places a price ceiling at $3 in the coffee...

    QUESTION 4 Suppose instead that the government places a price ceiling at $3 in the coffee market (graph is replicated below). NO 20 40 60 80 100 Q The new price in the market will be and the new quantity will be . This will result in a (surplus/shortage) units

  • Suppose that the government sets a price floor in the market for milk at $2.15 per...

    Suppose that the government sets a price floor in the market for milk at $2.15 per gallon of milk. If the equilibrium price of milk is $1.99, the result of the price floor will be a _____________ of milk and ____________ exchanges will be made with the price floor than would be made in a free market. shortage; more shortage; fewer surplus; more surplus; fewer

  • If the equilibrium price of avocados is $4 and the government issues a price ceiling of...

    If the equilibrium price of avocados is $4 and the government issues a price ceiling of $4.50, what is likely to happen in the market for avocados? Group of answer choices A) The equilibrium price will remain unchanged from the price ceiling. B) The equilibrium price will rise to $4.50 as a result of the price ceiling. C) A shortage of avocados will result from the price ceiling. D) A surplus of avocados will result from the price ceiling.

  • Refer to the figure below. If the government sets a price ceiling at $20, there would...

    Refer to the figure below. If the government sets a price ceiling at $20, there would be a(n):      a) excess shortage of 26 units.     b) excess supply of 22 units.     c) shortage of 20 units. 90 80 70 60 50 40 30 20 10 4 8 12 16 20 24 28 32 36

  • Basic Microeconomics D-S Analysis: Suppose the demand and supply curves are specified as: Qa = 100-P...

    Basic Microeconomics D-S Analysis: Suppose the demand and supply curves are specified as: Qa = 100-P & Q. =P -20. (a) What is the equilibrium price and quantity in this market? (b) Solve for producer surplus and consumer surplus at equilibrium. (c) Construct a D-S diagram depicting (a) and (b) above. (d) Suppose the government sets a price ceiling = $50. i. Solve for the surplus or shortage at this price. ii. Solve for the resulting consumer surplus and producer...

  • suppose policy makers decide to impose a price ceiling on a good they think QUESTION 20...

    suppose policy makers decide to impose a price ceiling on a good they think QUESTION 20 Suppose policymakers decide to impose a price ceiling on a good because they think the market-determined price is too high. if the government imposes the price ceiling below the equilibrium price, as the government of Venezuela is currently doing in many markets- including the market for food, (choose all correct answers) producers will respond to the lower price by offering fewer units for sale...

  • 8. The following graph represents the market for donuts. Suppose the government implements a price ceiling...

    8. The following graph represents the market for donuts. Suppose the government implements a price ceiling of $5 per box of a dozen donuts. (4 pts.) Price Market for Donuts $6.50 $5.00 ---- 361 Quantity (dozen) a. What price will suppliers sell a box a dozen donuts? b. Will the market have a shortage or surplus of donuts? Or, will the market remain in equilibrium? C. Was the price ceiling effective? d. Is the market for donuts efficient?

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT