Log in
Economics
6
answers
0
watching
437
views
1 Mar 2018

Price Supply Demand Q1Q0 Quantity FIGURE 5-8 17) Refer to Figure 5-8. Suppose that a binding output quota is imposed on this market at quantity Q1. The loss in economic surplus due to the quota is equal to A) areas 5 and 6. B) areas 5, 6 and 7. C) areas 2 and 5. D) area 1. E) areas 1, 2 and 3.

word_media_image1.png
Watch
6
answers
0
watching
437
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share
Already have an account? Log in
Share
Already have an account? Log in
Share
Already have an account? Log in
Share
Already have an account? Log in
Share
Irving Heathcote
Irving HeathcoteLv2
1 Mar 2018
Already have an account? Log in
Share

Related textbook solutions

Principles of Economics
2nd Edition, 2017
Openstax
ISBN: 9781947172364
Principles of Macroeconomics
2 Edition,
Openstax
ISBN: 9781947172388
Principles of Microeconomics
2 Edition,
Openstax
ISBN: 9781947172340

Related questions

18) Refer to Figure 5-8. Suppose that a binding output quota is imposed on this market at quantity Q1. The loss in economic surplus due to the quota is equal to A) areas 5 and 6. B) areas 5, 6 and 7. C) areas 2 and 5. D) area l. E) areas 1, 2 and 3. The table below shows the quantities of toffee bars and bags of cashews that a consumer could consume over a l-week period. Toffee (bars) Cashews (bags) Units Marginal Utility Total Utility Marginal Utility Total Utility 10 10 18 10 5 23 7 5 6 27 27 TABLE 6-1

Supply Price (Ss per hour) 8 9 Demand 1000 2000 3000 4000 5000 6000 7000 8000 Quantity (number of hours of gardening service per month) FIGURE 5-5 17) Refer to Figure 5-5. Suppose this market for gardening services is in a free-market equilibrium. If the government then imposes a price floor of $50 per hour for gardening services, the result would be A) a loss of economic surplus of the areas 6 and 7. B) a loss of economic surplus of the areas 2 and 6. C) a loss of economic surplus of the area 1. D) a loss of economic surplus of the areas 2, 3, 4, 6, and 7. E) a loss of economic surplus of the areas 1, 2, 3, and 4.

Supply Price (Ss per hour) 8 9 Demand 1000 2000 3000 4000 5000 6000 7000 8000 Quantity (number of hours of gardening service per month) FIGURE 5-5 14) Refer to Figure 5-5. At the market-clearing price and quantity of $30 per hour and 4000 hours of gardening services purchased, the economic surplus is in the market is the sum of the areas A) below the demand curve, but above the market-clearing price of $30, that is, areas 1, 2, 6. B) below the demand curve, that is, areas 1, 2, 3, 4, 5, 6, 7, 8, 9. C) above the supply curve, but below the market-clearing price of $30, that is, areas 3, 4, 7. D) above the supply curve and below the demand curve, that is, areas 1, 2, 3, 4, 6, 7. E) below the demand curve, up to 400 hours, that is, areas 1, 2, 3, 4, 5, 6, 7, 8.

Related Documents

ECO 1104
Final Exam
Study Guide
ECO 1104 : The cost of taxation.odt
orangegiraffe962
ECO 108 Lecture Notes - Lecture 10: Economic Surplus, Deadweight Loss, Demand Curve
peachwoodchuck721
ECO200Y5 Lecture Notes - Lecture 3: Demand Curve, Economic Surplus, Ontario Health Insurance Plan
silvercockroach865

Weekly leaderboard

Home
Homework Help 3,900,000
Economics 400,000
Start filling in the gaps now
Log in