ECON 208 Chapter Notes - Chapter 5: Price Floor, Shortage, Competitive Equilibrium

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21 Jan 2019

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ECON 208 Full Course Notes

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If the qd is less than qs, demand will determine the amount actually exchanged. If the qd exceeds qs, supply will determine the amount actually exchanged. In disequilibrium, the quantity exchanged is determined by the lesser of quantity demanded and quantity supplied. Thus, less need for further employers: less sick days of: because the opportunity cost is higher, a black market is any market in which goods are sold at illegal prices. Hiring people for cash at less than minimum wage is an example of a black market. In production by quotas: higher prices via. Scalping (not illegal in canada but illegal in some countries) 5. 2 rent controls: a case study of price ceilings. You purchase, and it gives you services for a: illegal schemes like key money , poor upkeep bribe those who, discrimination (seller preferences) race, gender, religion, pet, scanning death" notices to jump the queue". It is difficult to abolish rent controls (politically).

Related Questions

The wheat market is perfectly competitive, and the market supply and demand curves are given by the following equations:

QD=20,000,000-4,000,000P

QS=7,000,000+2,500,000P, where QD and QS are quantity demanded and quantity supplied measured in bushels, and P=price per bushel.

a.) Determine consumer surplus at the equilibrium price and quantity.

b.) Assume that the government has imposed a price floor at $2.25 per bushel and agrees to buy any resulting excess supply. How many bushels of wheat will the government be forced to buy? Determine consumer surplus with the price floor.

taupegerbil480

Suppose demand and supply are given by Q^d = 60 - P and Q^s = P - 20.

a. What are the equilibrium quantity and price in this market?

b. Determine the quantity demanded, the quantity supplied, and the magnitude of the surplus if a price floor of $52 is imposed in this market.

c. Determine the quantity demanded, the quantity supplied, and the magnitude of the shortage if a price ceiling of $36 is imposed in the market. Also, determine the full economic price paid by consumers.