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Let Qu =240-4p and Qs = - 80 + 4p represent the demand and supply equations for milk, respectively. A price floor equal to $50 will create whereas a price floor equal to $30 will create 70- O A. excess supply equal to 80 units; zero excess demand 60- S O B. excess supply equal to 40 units; excess demand equal to 40 units 50- O C. excess supply equal to 40 units; zero excess demand Price ($) O D. excess supply equal to 80 units; excess demand equal to 80 units 40- 30- D 20- 10- 20 40 60 80 100 120 140 QuantityDemand and Supply Schedules for Chocolate Bars Price Quantity Demanded Quantity Supplied {S} [thousands per week) [thousands per week) 2.00 1500 2100 1.50 1500 2050 1.50 11"00 2000 1.40 1500 1950 1.20 1900 1900 1.00 2000 1350 0.50 2100 1300 0.50 2200 1?50 0.40 2300 1?00 Refer to the table above. Suppose that as a public-health measure the government wants to reduce the number of chocolate bars that children consume. To achieve this outcome. the government could implement which of the following policies? . Impose a price ceiling of $1.40 a i 2- B. Impose a price floor of $1.40 C. Impose a price floor of $1.00 D . Impose a price ceiling of $1.50 1Lr'il'hich one of the following is NOT likely to be an outcome of a rent ceiling imposed below the market rental rate? (\"1- A. Hidden market prices for rental units above the market equilibrium price. (\"2- B. Increased building of new rental units. (\"2- C. Landlords allocating rental units by sellers' preferences. (\"2- D. More families sharing living quarters. (Hi E. A growing shortage of rental units. The figure to the right shows the market for one-bedroom apartments in Quebec City. The city government sets a rent ceiling at $680. In this situation, if all apartments were sold on Rental Housing Market the hidden market, then the rent for a one-bedroom apartment is O A. any rent above $680. O B. $570. S Rental Price ($) O C. the same as equilibrium price. 850 B O D. $850. O E. $990. 570 A D Quantity of Apartments (thousands)The diagram shows the market for apartments in a city. Assume that all apartments are identical. 1,400- 1,300- Suppose the government imposes a rent-controlled price of $500 per month on apartments in this city. In the long run we can expect the shortage of apartments to be units. 1,200- 51 1,100- O A. 100 1,000- S2 O B. 300 900- O C. 1100 Price (dollars per month) 800- Price B OD. 0 700- O E. 700 600- 50 0 -mummy Price A 400- Demand 300 0 200 400 600 800 1,000 1,200 1,400 Quantity of apartmentsDavid is willing to pay $7.24 for his fourth cappuccino (market price is $5.36) and the lowest price the store is willing to accept is $1.18. The economic surplus on the fourth cappuccino is O A. $4.18. O B. $12.12. O C. $3.76. O D. $1.88. O E. $6.06.The figure to the right shows the market for T-shirts in a Hamilton neighbourhood. The economic surplus generated by consuming and producing the 39th T-shirt is Hamilton T-Shirt Market O A. $16. 98 O B. $39. O C. $49. O D. $10. O E. $20 Price ($ per T-shirt) 49..... D 39 49 Quantity (T-shirts per week)When a hidden market emerges there is O A. a deadweight loss. O B. a deadweight gain for producers. O C. an economic deficit. O D. a deadweight gain for consumers. O E. a maximized economic surplus.Consider the market for wheat in which the wheat marketing board sets a quota for wheat which is below the equilibrium quantity. The quota will cause the price of wheat to and the revenue earned by all farmers to . rise; rise if demand is elastic and fall if demand is inelastic . fall; fall . stay constant; fall . rise; rise if demand is inelastic and fall if demand is elastic Geoff is willing to pay $18 for a sixth entrance to a mountain bike park. The market price for entrance is $13.5. The bike park is willing to accept $8.?5. The total economic surplus generated from Geoff's sixth trip to the bike park is E) O A. $4.50 C) B. $9.25. O C. $13.00. O D. $4.?5. C) E. $13.50. The diagram shows the market for gardening services. 70- At the market-clearing price and quantity of $30 per hour and 8000 hours of gardening services purchased, the economic surplus is 60- Supply 5 O A. the sum of the areas below the demand curve - i.e., areas 1, 2, 3, 4, 5, 6, 7, 8, 9. O B. the sum of the areas above the supply curve and below the demand curve - i.e., areas 5, 6, 7, 8, 4, 3. 40- 6 4 Price ($ per hour) O C. the sum of the areas below the demand curve, but above the market-clearing price of $30 - i.e., areas 5, 6, 4. O D. the sum of the areas below the demand curve, up to 8000 hours - i.e., areas 5, 6, 3 7 7, 8, 9, 4, 3, 2. 20- O E. the sum of the areas above the supply curve, but below the market-clearing price 10- of $30 - i.e., areas 7, 8, 3. 8 2 1 Demand 9 2000 4000 6000 8000 10000 12000 14000 16000 Quantity (number of hours of gardening service per monthSuppose that a binding output quota is imposed on this market at quantity 01. The loss in economic surplus due to the quota is equal to [:1 A. areas 4, 5,ahi:1 E. [:1 B. areas 3 and 2. P 1 [:1 (I. areas 5 and 3. 1| [:1 D. areas 7 and 1. E [:1 E. areas 3, 2, and 1. p D Quantity The diagram shows the market for litres of milk. After the imposition of a milk quota at quantity Q , economic surplus is represented by Supply 1 O A. areas 2, 3, 5, and 6. O B. areas 3 and 4. P1 O C. areas 1, 2, and 3. O D. areas 1, 2, and 5. 2 5 Price O E. areas 1, 2, 3, 4, 5, 6, and 7. Po 6 3 7 Demand 4 01 Quantity