Use the table below to answer the following questions. Table 1 Price (dollars per unit) Quantity Demanded (units) Quantity Supplied (units) 1 1,100 50 2 800 200 3 600 420 4 500 500 5 420 580 6 350 650 7 320 680 8 300 700 a) Refer to Table 1. At a price of $3 a unit How can you describe the situation in the market there is a 180-unit shortage and a tendency for the price to rise. b) In Table 1, What are the equilibrium price and equilibrium quantity? $4 a unit, 500 units. c) Suppose the federal government sets a price floor for corn at $6 per unit. What is the amount of shortage or surplus in the market as result of the price floor? Surplus of 300 units d) . If the government agrees to purchase any surplus output at $6, how much will it cost the government? $1800 e) Suppose the government buys up all of the output at the floor price and then sells the output to consumers at whatever price it can get. Under this scheme, what is the price at which the government will be able to sell off all of the output it had purchased from producers? What is the revenue received from the government's sale? At $2 and revenue = 800 * 2 = $1600 f. In this problem we have considered two government schemes: (1) a price floor is established, and the government purchases any excess output and (2) the government buys all the output at the floor price and resells at whatever price it can get. Which scheme will taxpayers prefer? Scheme 1 g. Consider again the two schemes. Which scheme will the producers' prefer? Scheme 2 h. Consider again the two schemes. Which scheme will the buyers prefer? Scheme 2 2. Use the figure below to answer the following questions. Figure 1 a- Consider the market for rental housing illustrated in Figure 1 when the demand curve is D0. The equilibrium in an unregulated market is 1,500 rooms rented at $150 a month. b- 3) Refer to Figure 1. If the demand for rental housing increases and the demand curve shifts rightward from D0 to D1, and the market is unregulated, the number of rooms rented is 1,750, and the rent rises to $175 a month. c- 4) Refer to Figure 1. If the demand for rental housing increases and the demand curve shifts rightward from D0 to D1, and there is a strictly enforced rent ceiling of $150 per room, the number of rooms rented is 1,500. d- 5) Refer to Figure 6.1.1. Suppose the demand for rental housing is shown by demand curve D1, and there is a rent ceiling of $150 per room. What is the highest rent that would be charged in a black market? $200 a month e- Refer to Figure 6.1.1. Suppose the demand for rental housing is shown by demand curve D1, and there is a rent ceiling of $150 per room. What is the potential loss from housing search? $75,000 3. Use the table below to answer the following questions. Table 2 a- Table 2 gives the supply and demand schedules for teenage labour in Genoa City. In an unregulated market, there is no teenage unemployment and the wage rate is $15 per hour. b- Table 2 gives the supply and demand schedules for teenage labour in Genoa City. Suppose the Genoa City Council sets a minimum wage of $16 per hour. Teenage unemployment is ________ hours a week. 400 c- Table 2 gives the supply and demand schedules for teenage labour in Genoa City. Suppose the Genoa City Council sets a minimum wage of $14 per hour. Teenage unemployment is ________ hours a week. zero d- Table 2 gives the supply and demand schedules for teenage labour in Genoa City. There is a minimum wage set at $16 per hour. Suppose a new fast food restaurant opens and increases the quantity demanded of teenage labour by 400 hours per week at each wage rate. The result is elimination of teenage unemployment, but the wage rate remains at $16 per hour. e- Table 2 gives the supply and demand schedules for teenage labour in Genoa City. Suppose a new fast food restaurant opens and increases the quantity demanded of teenage labour by 400 hours per week at each wage rate. If the teenage labour market is unregulated, there is an increase in teenage employment to 800 hours per week and a wage of $16 per hour