ECON 2030 : Lab Stuff For Test 2

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azuremammoth471

15 Mar 2019

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Lab stuff for test 2: suppose, spam is a normal good. National income is decreasing while the surgeon general announces, quitting spam now greatly reduces the serious risks to your health. The equilibrium price of spam will decrease and the equilibrium quantity transacted will decrease: suppose a binding price ceiling is imposed on a good which was in equilibrium when the ceiling was imposed. Everything else held constant, the floor will increase the quantity of the good supplied and increase the price of the good: suppose a binding quantity restriction is imposed on the market for apples. If it believes that increasing fairs would increase revenues, it is assuming that the price elasticity of demand for airline travel is less than one. As tr goes up= price goes up * quantity goes down. Greater than zero: suppose petra"s plantain plantation is profit- maximizing for selling plantains in a perfect competitive market.

Related Questions

If a binding price ceiling is imposed on the baby formula market, then

A. the quantity of baby formula demanded will increase.

B. the quantity of baby formula supplied will decrease.

C. a shortage of baby formula will develop.

D. All of the above are correct.

coffeeox888

A ban was imposed on the export of oranges to EconoLand. As the Minister of Agriculture you are concerned that this ban could result in a shortage of oranges. Your advisors provide the following recommendations: Â· Advisor 1: impose a binding price ceiling. Â· Advisor 2: impose a binding price floor. Â· Advisor 3: take no action at all.

Determine with regard to demand, supply, price and quantity:

(i) The impact of the ban on the market for oranges in EconoLand.

(ii) The impact on the market for oranges in EconoLand if each recommendation is implemented.

Your answer options for each one of demand, supply, price and quantity are:

Decrease toward Equilibrium
Increase Equilibrium price
Excess Supply
Decrease Equilibrium price
No Impact
Increase Equilibrium quantity
Increase toward equilibrium
Decrease Equilibrium quantity
Change in price uncertain
Shift inwards/ to the left
Excess Demand
Change in quantity uncertain
Shift outward/ to the right

pucealligator309

QUESTION 38

You are the president of the United States. In an attempt to make gasoline prices cheaper, you have imposed a binding price ceiling on gas. What would you expect your critics to say?

	a.	The binding price ceiling will cause firms to minimize their spending on the research and development of alternatives to gasoline.
	b.	The binding price ceiling will discourage individuals from using their personal automobile to commute to work or school.
	c.	The binding price ceiling will increase the likelihood that customers obtain needed gasoline on the black market.
	d.	The binding price ceiling will encourage oil companies to deplete the resource too quickly.
	e.	The binding price ceiling will cause firms to produce only gasoline of the highest quality.

1.05000 points

QUESTION 39

If a firm's long-run average total costs increase as it increases its scale of production, the firm is experiencing:

	a.	increasing returns from specialization.
	b.	diseconomies of scale.
	c.	economies of scale.
	d.	constant returns to scale.
	e.	diminishing marginal product.

1.05000 points

QUESTION 40

A(n) __________ in the elasticity of supply or demand in a market for a good that is taxed would tend to __________ tax revenue from that tax.

	a.	increase; increase
	b.	increase; have no effect on
	c.	decrease; have no effect on
	d.	decrease; decrease
	e.	increase; decrease

1.05000 points

QUESTION 41

The costs of a market activity paid for by an individual engaged in the market activity are:

	a.	external costs.
	b.	social costs.
	c.	common costs.
	d.	free-rider costs.
	e.	internal costs.

1.05000 points

QUESTION 42

Assume that the price of rubber increased at the same time that Michael Jordan, arguably the best NBA basketball player of all time, became famous. What do you expect to happen to the equilibrium price and equilibrium quantity of the basketball shoes that are promoted by Michael Jordan?

	a.	Equilibrium price will go down and equilibrium quantity will be indeterminate.
	b.	Equilibrium price will go up and equilibrium quantity will go down.
	c.	Equilibrium price will go up and equilibrium quantity will be indeterminate.
	d.	Equilibrium price will go down and equilibrium quantity will go up.
	e.	Equilibrium price will go up and equilibrium quantity will go up.

1.05000 points

QUESTION 43

The minimum wage law is an example of a:

	a.	price floor.
	b.	law that sets the minimum number of hours that an employee must work for wages during the week.
	c.	law that allows individual employers and employees to make free decisions.
	d.	law that requires quantity demanded to equal quantity supplied.
	e.	price ceiling.

taupezebra466

ECON 2030 : Lab Stuff For Test 2

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