Question
Graph these coordinates and answer the questions: (you will also have to draw a $4 tax on top of S and, separately, a $6 price
Graph these coordinates and answer the questions: (you will also have to draw a $4 tax on top of S and, separately, a $6 price floor). Initial equilibrium is (4, $4)
$ | S qty | D qty |
X | Y | Y |
0 | 0 | 8 |
$2 | 2 | 6 |
$4 | 4 | 4 |
$6 | 6 | 2 |
$8 | 8 | 0 |
Question 1
With a price floor of $6, what is the total amount that consumers pay?
- a. Under $5
- b. Between $5 and $7
- c. Between $7 and $10
- d. Over $10
Question 2
Which scenario would the Producers prefer?
No tax or floor, $2 tax, or $6 price floor?
- a. No tax or floor.
- b. $4 tax
- c. $6 price floor
- d. We cannot tell from the data
Step by Step Solution
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Applied Statistics In Business And Economics
Authors: David Doane, Lori Seward
4th Edition
73521485, 978-0073521480
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