26. Suppose that an effective price floor is in place in the market for eggs. If the cost of producing eggs decreases, a. the shortage of eggs will increase. b. the surplus of eggs will increase. c. the quantity of eggs sold will increase. d. egg producers will earn more revenue from the sell of their eggs in the market. e. the price floor will become ineffective.
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| 1) Suppose the demand and supply curves for eggs in the United Qd = 100 - 20P where Qd = millions of dozens of eggs Americans would like to Fill in the following table:
Price Quantity Quantity ( Per Dozen) Demanded (Qd) Supplied (Qs)
$ .50 $ 1.00 $ 1.50 $ 2.00 $ 2.50
3) For each of the following products, explain whether demand is likely to be elastic or inelastic. A) Cigarettes B) Tacos C) Gasoline D) Milk 4 ) Explain which of the following is a fixed cost or a variable cost a. The cost of jet fuel used in its airplanes. b. The monthly rent on its Dallas, Texas headquarters. c. The yearly lease payments on its current inventory of d. The cost of peanuts it serves to passengers. 5) Which of the following indistries do you think are likely to exhibit large economies of scale? explain why in each case a) Home building b) Electric pwer generator c) Vegetable farming d) Software development e) Aircraft manufacturing
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| 1) Suppose the demand and supply curves for eggs in the United Qd = 100 - 20P where Qd = millions of dozens of eggs Americans would like to Fill in the following table:
Price Quantity Quantity ( Per Dozen) Demanded (Qd) Supplied (Qs)
$ .50 $ 1.00 $ 1.50 $ 2.00 $ 2.50
3) For each of the following products, explain whether demand is likely to be elastic or inelastic. A) Cigarettes B) Tacos C) Gasoline D) Milk 4 ) Explain which of the following is a fixed cost or a variable cost a. The cost of jet fuel used in its airplanes. b. The monthly rent on its Dallas, Texas headquarters. c. The yearly lease payments on its current inventory of d. The cost of peanuts it serves to passengers. 5) Which of the following indistries do you think are likely to exhibit large economies of scale? explain why in each case a) Home building b) Electric pwer generator c) Vegetable farming d) Software development e) Aircraft manufacturing
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