uiz 1 a 1?https:/ Quiz 1 6 in weeks wnen tornaaoes tnreaten iusa, tne aemana tor
ID: 1164085 • Letter: U
Question
uiz 1 a 1?https:/ Quiz 1 6 in weeks wnen tornaaoes tnreaten iusa, tne aemana tor pacKs Or AA Datteries increases as snown in tne tapie oeiow. AA Battery Market (Threat of Tornadoes) New of Batteries Demanded Batteries Supplied New Quantity of (packs) 40 Price (dollars) (packs) 20 50 14 12 Imagine that city leaders would like to prevent the price of packages of AA batteries from rising in weeks that tornadoes threaten Tulsa, Oklahoma. They impose a price ceiling of $12 for packages of AA batteries. b. Assume the city does not impose the price ceiling during weeks that tornadoes threaten Tulsa, Oklahoma. 110 packs The equilibrium price in the market for packs of AA batteries will be18 and the equilibrium quantity will be c. Now assume the price ceiling has been imposed on the market for packs of AA batteries during weeks that tornadoes threaten Tulsa
Explanation / Answer
b) when there is no price ceiling, equilibrium occurs when quantity demanded is equal to quantity supplied. This happens at price= 14 when quantity demanded= quantity supplied= 80.
Equilibrium price= 14
Equilibrium quantity= 80
c) at price ceiling of 12 quantity demanded is 90 and quantity supplied is 60.
There is a shortage of 90-60= 30 as only 60 packs are sold in the market.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.