Suppose the government imposes a price ceiling of $5 on this market. What will b

Question

Suppose the government imposes a price ceiling of $5 on this market. What will be the size of the shortage in this market? a. 2 units b. 8 units c. 10 units d. 0 units What is the opportunity cost to Library land of increasing the production of books from 200 to 300? a. 100 magazines b. 150 magazines c. 350 magazines d. 200 magazines The market demand curve a. is the sum of all individual demand curves. b. is always flatter than an individual demand curve. c. is the demand curve for every product in an industry. d. Shows the average quantity demanded by individual demander at each price.

Explanation / Answer

20. D. 0 units

Shortage/Surplus = Quantity Demanded - Quantity supplied

At Price =5, Quantity demanded = 2 , Quantity Supplied = 10

Shortage = 2 - 10 = -8

So , there is Surplus of 8, hence no shortage in the market .

21 150 Magzines

As Oppurtunity cost = Change in Magazines due to increase in books

= 350 - 200

= 150

22. Is the sum of Individual demand curve

If you don't understand anything then comment, I'ill revert back on the same. :)

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.