ch16 - ch16 Multiple Choice Identify the choice that best...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
ch16 Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. The inverse demand function for grapefruit is defined by the equation p = 282 – 9 q , where q is the number of units sold. The inverse supply function is defined by p = 7 + 2 q . A tax of $22 is imposed on suppliers for each unit of grapefruit that they sell. When the tax is imposed, the quantity of grapefruit sold falls to a. 25. b. 14. c. 21. d. 23. e. 24. ____ 2. In a crowded city far away, the civic authorities decided that rents were too high. The long-run supply func- tion of two-room rental apartments was given by q = 17 + 4 p and the long-run demand function was given by q = 304 – 5 p , where p is the rental rate in crowns per week. The authorities made it illegal to rent an apart- ment for more than 27 crowns per week. To avoid a housing shortage, the authorities agreed to pay landlords enough of a subsidy to make supply equal to demand. How much would the weekly subsidy per apartment have to be to eliminate excess demand at the ceiling price? a. 5.50 crowns b. 8 crowns c. 11 crowns d. 22 crowns e. 16.50 crowns ____ 3. The demand function for Schrecklichs is 200 – 4 P S – 2 P L and the demand function for LaMerdes is 200 – 3 P L P S , where P S and P L are respectively the price of Schrecklichs and LaMerdes. If the world supply of Schrecklichs is 130 and the world supply of LaMerdes is 120, then the equilibrium price of Schrecklichs is
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 08/25/2009 for the course ECON 302 taught by Professor Toossi during the Spring '08 term at University of Illinois at Urbana–Champaign.

Page1 / 4

ch16 - ch16 Multiple Choice Identify the choice that best...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online