QUEBI IUN 4 James is trying to gure out the best way to spend his time. He can divide his time between producing greeting cards and flipping hamburgers. He can choose to produce 10 greeting cards in an hour and receive $1.50 profit per greeting card. Alternatively, he can flip hamburgers for $16 per hour. In both instances, James is only able to work for 10 hours a day. The price of greeting cards increases to $2.50 profit per greeting card after James makes his initial decision on the best way to spend his time. Which of the following statements are true: Ceteris Paribus, prior to the price increase for greeting cards, James will ip hamburgers for 8 hours and only make cards for 2 hours as this results in the largest surplus for him. Ceteris Paribus, following the price increase for greeting cards, James will spend his 10 hours making greeting cards as this is more protable. The increase in price of greeting cards does not affect James' quantity supplied of greeting cards. It remains at 100. The increase in price of greeting cards will cause the number of hamburgers ipped by James per day to reduce. QUESTION 3 In 2015 the price of diamond jewellery dropped by between 12-15%. The drop in price has been linked to the loosening of the De Beer Group of Companies' monopoly over the diamond trade. Select the item from the list provided to make the following statements true. 10- Adrop in price (ceteris paribus) would see an economist 1' Movement up and along the demand curve refer to the impact on the demand curve for diamonds as a Increase Not equal A _ _ _ Shift to the left of the demand curve ' V How would the Impact on demand be descrlbed If there was Decrease an increase in the price and decrease in quantity demanded of diamonds, ceteris paribus? Decrease '" demand Shift right of the demand curve If the quantity demanded of diamonds decrease, ceteris Shift left of the supply curve paribus, this could be explained if the price of diamonds 9_ Movement both up and down along the demand curve 10. Movement down and along the demand curve 1 1 . Not enough information to know 12. Nothing has changed .00.\"???90!\" In 1930 the Australian Football League (AFL), at the time the Victorian Football League (VFL), implemented a price ceiling wage on all AFL players known as the Coulter Law. The ceiling was 3 pounds, approximately $230 dollars in today's money. The market equilibrium price was 6.1 pounds and the equilibrium quantity of players was 450. The supply of players at the price ceiling is 300 whilst the willingness of clubs to pay for players is 11.2 pounds at the quantity of 300. What is the dead weight loss as a result of the price ceiling in pounds? Answer to the nearest two decimal places. The Screen Actors Guild of America imposes a minimum wage that must be made to all its members when they do work for feature lms. These prices are above what the members would otherwise be paid for their work if the market was unregulated. Answer the following questions: a. The minimum wage imposed by SAG is an example of? . Type C for Price Ceiling, F for Price Floor, M for Market Equilibrium Price, B for Black Market Price or D for Deadweight Loss Price. b. The minimum a worker must be paid per week in 2013/14 is $3200. If the worker would typically be paid $2350 in a competitive market situation, what would happen to consumer surplus by imposing the minimum wage? . Type | for Increase, D for Decrease, S for Remain the Same or M for More information needed. c. The minimum wage imposed by SAG is likely to result in a surplus or shortage of workers for feature lms? Type P for Surplus or G for Shortage
