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Principles of Economics8th EditionN. Gregory Mankiw 1,337 solutions Principles of Economics7th EditionN. Gregory Mankiw 1,396 solutions Century 21 Accounting: General Journal11th EditionClaudia Bienias Gilbertson, Debra Gentene, Mark W Lehman 1,012 solutions If the price of good ABC is $100 and the price of good XYZ is $50, it follows that the relative price of one unit of good XYZ is a.2 units of ABC. B. 0.5 units of ABC. (price asked/other Exhibit 4-3 Refer to Exhibit 4-3. Suppose that the government imposes a price floor on good Z at a price of $10. The result would be a.a shortage in the market for good Z. d.no change in the market for good Z since the price floor is below the equilibrium price. (A price floor is a government mandated minimum price below which the good cannot be legally sold. A price floor that is set below the equilibrium price will not keep the market from being able to reach equilibrium, and thus will have no effects upon the market.) If the minimum wage law sets a wage floor above the equilibrium wage in the unskilled labor market, a.the
minimum wage will create a shortage of labor. c.the minimum wage will create a surplus of labor. If a price ceiling is set below the equilibrium price of a good, the price ceiling will a.result in
a surplus of the good. c.result in a shortage of the good. If a price floor is set above the equilibrium price in a given market, the result in that market will be a _____________ of the product and ____________ exchanges to be made. a.surplus; more d.surplus; fewer The relative price of beef in terms of chicken has increased. This could be due to _________________, ceteris paribus. a.an increase in the absolute price of beef a.an increase in the absolute price of beef (The relative price of a good is its price in terms of another good. An increase in the relative price of beef would result from an increase in the absolute price of beef, a decrease in the absolute price of chicken, or both. If absolute price of a good RISES & NOTHING ELSE CHANGES→ relative price RISES) Margaret is a very good manicurist and in order to get a manicure from her, clients must also purchase a pedicure. This type of arrangement is known in economics as a a.tie-in sale. a. tie-in sale. If the absolute price of a television is $800 and the relative price of a couch is four televisions, it follows that the absolute price of a couch is a.$200. d. $3,200. (relative
price of a couch IS FOUR tv's A price ceiling (below the equilibrium price) can bring about all but __________________. a.a shortage b. a surplus A price ceiling will a.increase consumers' surplus. e. c and d. The price of good X is $50 and the price of good Y is $30. It follows that the relative price of one unit of X is ______________ and the relative price of one unit of Y is ___________. a.0.6X, 1.67Y b.1.67Y, 0.6X ("relative price of one unit of X is" A tax placed on the purchase of one good and not another good can lead to a.a change in the relative price of both goods. a.a change in the relative price of both goods. (if their relative prices are 1, and one increases, it'll change both of them) ***Refer to the exhibit. If P1 is a price ceiling, then consumers' surplus is equal to _______ and producers' surplus is equal to ______. b.A+B+D, F If the current market price is below equilibrium e.a and d Exhibit 4-1 Refer to Exhibit 4-1 which represents the market for artichokes. Suppose that the horizontal line at a price of $2 represents a price floor imposed by the government on this market. Based upon this information, which of the following statements is true? a.At the price floor 1,000 artichokes will be bought and sold. c.The price floor of $2 will have no effects on the market for artichokes since it is below the equilibrium price. (A price floor that is set below the equilibrium price will not keep the market from being able to reach equilibrium, and thus will have no effects upon the market.) **Suppose that the government sets a price floor in the market for milk at $2 per gallon. If this price floor has no effects on the market for milk, we can conclude that a.the equilibrium price of milk must be greater than $2 per gallon. a.the equilibrium price of milk must be greater than $2 per gallon. (A price floor is a government mandated minimum price below which the good cannot be legally sold. A price floor that is set below the equilibrium price will not keep the market from being able to reach equilibrium, and thus will have no effects upon the market.) Exhibit 4-3 Refer to Exhibit 4-3. Suppose that the government imposes a price ceiling at a price of $10. The number of units that would be exchanged in this market at the price ceiling would be a.160 A. 160 (Price ceiling=MAX price that the good can be sold. Even if they demand 300, they only supplied 160, so a total of 160 can only be sold) The relative price of good X is 5 units of good Y. It follows that the absolute price of good X can be ______________ and the absolute price of good Y can be ___________. a.$10, $50 b. $100, $20 (X has to be more than good Y. Which of the following statements is true? a.Consumer surplus is represented graphically by the area: below the demand curve, above the market price, and to the right
of the market quantity. e.none of the above If the absolute price of good X is $10 and the absolute price of good Y is $15, then the relative price of good X is ____________ and the relative price of good Y is __________. a.2/3Y, 2/3X c.2/3Y, 1.5X (relative price of good X- **PRICE: Based on the information in the table below, how many fewer units will be exchanged if the government imposes a price floor of $5 compared to the number of units exchanged at equilibrium? a.70 units b. 40 units (idk if it's b/c you're going from the equil of
$3 and the QD is 80 but @5 it is 40...so it's 40 units? PRICE: Based on the information in the table below, how many units will be exchanged if the government imposes a price ceiling of $2? a.70 units a. 70 units. (Price ceiling=cannot go any higher than that $. If the absolute price of good X rises and the absolute price of good Y remains constant, it follows that the a.relative price of Y will rise. c.relative price of X will rise. If the demand curve for unskilled workers is fairly steep, then a rise in the wage rate will lead to a ____________________ decline in the number of unskilled workers that firms want to hire than if the demand for unskilled workers is _______________. a.smaller, fairly flat b.bigger, fairly flat ( If the demand curve for unskilled workers is fairly steep, then a rise in the wage rate will lead to a bigger decline in the number of unskilled workers that firms want to hire than if the demand for unskilled workers is fairly flat.) The absolute price of a good a.necessarily falls as the price of a complementary good falls. d.Is the price of a good in money terms. Some say that a price ceiling (legislated price below equilibrium price) makes money more valuable because a given unit of money (say, a $1 bill) can buy more of a good at a lower price than at a higher price. This leaves out the fact that a.at a price ceiling, there is a shortage, and money might not be
able to buy a good for which there is a shortage. a.at a price ceiling, there is a shortage, and money might not be able to buy a good for which there is a shortage. Suppose that the market for hot dogs has an equilibrium price of $5 and an equilibrium quantity of 50 hot dogs. Now, suppose the government imposes a $4 price ceiling on hot dogs. If the quantity supplied at this price is 40 hot dogs, and the quantity demanded at this price is 60 hot dogs, how many hot dogs will be exchanged under this government imposed price ceiling. a.40 a.40 Which of the following would not result from a price ceiling imposed on a product that is set below the equilibrium price? a.fewer exchanges c.more exchanges Suppose that the government sets a price ceiling in the market for avocados at $1 per avocado. If the equilibrium price of an avocado is $1.50, the result of the price ceiling will be a _____________ of avocados and ____________ exchanges will be made with the price ceiling than would be made in a free market. a.surplus; more c.shortage; fewer Suppose that the market for hot dogs has an equilibrium price of $5 and an equilibrium quantity of 50 hot dogs. Now, suppose the government imposes a $6 price floor on hot dogs. If the quantity supplied at this price is 60 hot dogs, and the quantity demanded at this price is 40 hot dogs, how many hot dogs will be exchanged under this government imposed price floor. a.80 b.40 <https://cxp-cdn.cengage.info/protected/prod/assets/62/f/62f07d04-20a5-4c2f-9dae-46701fb10484.png?__gda__=st=1569203888~exp=1569808688~acl=%2fprotected%2fprod%2fassets%2f62%2ff%2f62f07d04-20a5-4c2f-9dae-46701fb10484.png*~hmac=751d5dd5bf58e584a5a538b9e4f3eb6985185aa2277d04a1f9ed84d30ea436ce> Refer to Exhibit 4-1 which represents the market for artichokes. Suppose that the horizontal line at a price of $2 represents a price ceiling imposed by the government on this market. How many fewer artichokes would be exchanged at the price ceiling compared to the number that would be exchanged in the absence of any price controls? a.1,000 d. 200 ( In the absence of any price controls, the price of an artichoke is the equilibrium price of $4 and the number of units exchanged is 800. At a price ceiling of $2 the number of units exchanged is 600 since that is the number of units that the sellers are willing to sell. Thus 200 fewer artichokes would be exchanged with the price ceiling than without any price controls.) The equilibrium price of rental housing in City PQR is $1,000. If a price ceiling on rental housing is set at $800 in City PQR, the result in that city will be __________________ compared to at the equilibrium rental rate. a.an increase in the supply of rental units d.a decline in the quantity supplied of rental units Exhibit 4-3 Refer to Exhibit 4-3. Suppose that the government imposes a price ceiling at a price of $10. How many fewer units would be exchanged at the price ceiling than would be exchanged if the market for good Z were a free market? d. 40 (Look @$10 for QS: 160 A ____________________________ loss is the loss to society of not producing the competitive level of output. a.deadlock c.deadweight Exhibit 4-3 Refer to Exhibit 4-3. Suppose that the government imposes a price floor at a price of $16. _________ units would be exchanged at the equilibrium price and ____________ units would be exchanged with the price floor in effect. a. 200, 150 a. 200, 150 (At the equilibrium price 200 units would be exchanged. A price floor is a government mandated minimum price below which the good cannot be legally sold. At a price of $16 the quantity demanded is 150 units and the quantity supplied is 220 units. Since the sellers cannot make the buyers buy more units than they desire, the number of units exchanged at the price floor would be 150 units.) Suppose that a new minimum wage is set above the equilibrium wage in the unskilled labor market. The expected result would be a.reduce the number of hours worked by unskilled workers or reduce the number of unskilled workers employed. a.reduce the number of hours worked by unskilled workers or reduce the number of unskilled workers employed. (Minimum wage is a price floor. As with other price floors, there will be fewer units demanded at the higher wage than at the equilibrium wage. When the minimum wage is set above the equilibrium wage rate for unskilled workers, the result will be a reduction in the number or hours worked by those workers, or a reduction in the number of unskilled workers employed.) In a free market, the number of units of a good that will be exchanged will be a.equal to the number exchanged if a price ceiling (set below the equilibrium price) exists. c.greater than the number exchanged if a price ceiling (set below the equilibrium price) exists. Suppose that the price of an orange is $2 and the price of an apple is $1. If the price of an orange falls to $1.50 and the price of an apple rises to
$1.50, then the absolute price of an apple has _____________ and the relative price of an apple has ______________. b.risen; risen (actual price rose and the relative price is higher which will change the overall relative price) Which of the following would not result from a price ceiling (set below equilibrium price)? a.nonprice-rationing
devices b.a decrease in supply Exhibit 4-3 Refer to Exhibit 4-3. Suppose that the government imposes a price ceiling at a price of $12. The result would be a ________________ of _____________ units
of good Z. c.shortage, 70 If a politician asserts that an increase in the minimum wage for unskilled workers will result in no current workers losing their jobs, economic theory indicates that the politician must believe that the current minimum wage is _________________ the equilibrium wage for unskilled workers. a.below a. below Exhibit 4-2 Refer to Exhibit 4-2 which represents four variations on the market for good X. Which of the following statements is true? a.Graph (1): A price ceiling set at P3 would have no effects on the market for good X. b.Graph (2): If the government imposes a price ceiling at P3 the result would be a shortage of good X. ( A price ceiling is a government mandated maximum price above which the good cannot be legally sold. When a price ceiling is set below the equilibrium price of the product the result will be a shortage of the product.) When a price floor is imposed (above the equilibrium price), the result is a _______________ in consumers' surplus, a _____________ in producers' surplus, and a _________________ in total surplus. a.loss; unknown effect; loss a.loss; unknown effect; loss (A price floor results in a loss in consumers' surplus that is greater than the gain in producers' surplus.) The government imposes a price floor on a good below its equilibrium price. Which of the following is a likely result? a.No change will occur in the market. a. No change will occur in the market. If buyers are willing to pay $20 for a DVD, and the price ceiling is set at $8 for a DVD, what is the dollar amount that could prompt a tie-in sale? a.$24 c. $12 (diff b/t $20 and $8 is $12) There are two goods in the economy: bread and bananas. If the relative price of bananas has increased it could be due to a.a large decrease in the absolute price of bananas, ceteris paribus. b.a decrease in the absolute price of bread, ceteris paribus. (The relative price of a good is its price in terms of another good. In order for the relative price of bananas to rise in this economy, either the absolute price of bananas has risen (ceteris paribus) or the absolute price of bread has fallen (ceteris paribus.)) **Refer to the exhibit. Initially, the market equilibrium price exists in the market. At this price, consumers' surplus is equal to _______________ and producers' surplus is equal to ________________. c.A+B+C, D+E+F The price of good A is $80 and the price of good B is $20, it follows that the relative price of one unit of good A is _____________ unit(s) of good B. a.4 a. 4 (80 / 20 = 4) Exhibit 4-1 Refer to Exhibit 4-1 which represents the market for artichokes. Suppose that the horizontal line at a price of $2 represents a price ceiling imposed by the government on this market. Based upon this information, which of the following statements is true? a.At the price ceiling 600 artichokes will be bought and sold. a.At the price ceiling 600 artichokes will be bought and sold. (A price ceiling is a government mandated maximum price above which the good cannot be legally sold. At a price of $2, the quantity demanded is 1,000 artichokes and the quantity supplied is 600 artichokes. Since the sellers are only willing to sell 600 artichokes that is the number of artichokes that will be bought and sold at this price.) What happens when the minimum wage is set above the equilibrium wage?A minimum wage that is set above the equilibrium wage will cause a reduction in the quantity labor demanded, and a rise in the quantity of labor supplied. This happens because, at minimum wage, the cost of production increases, and therefore, employers fire some employees to cut on the cost of production.
When the minimum wage is set above the equilibrium market wage quizlet?A minimum wage set above the equilibrium wage rate creates a surplus of labor - the quantity of labor supplied exceeds the quantity of labor demanded. The minimum wage reduces employment so that it is less than the efficient amount.
What happens when the minimum wage is set below the equilibrium wage?If the equilibrium wage is below the minimum wage, however, then there will be a surplus of labor: at the artificially high minimum wage, aggregate demand for labor is lower than aggregate supply, meaning that there will be unemployment (surpluses of labor).
Is a minimum wage above the equilibrium binding?Answer and Explanation: The minimum wage is an example of the price floor. A binding minimum wage means that minimum wages set by the government are above the equilibrium wages. Hence, the binding minimum wages cannot be cleared by the supply and demand.
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When the minimum wage is established above the equilibrium wage then quizlet?
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