Unformatted text preview: 1,500 and shifts the demand curve to the right. At $10 per hour, now
4,000 hours of labour is demanded supply= demand unemployment of 1,500 is
eliminated. Suppose good X is a prohibited good. Use the following table to answer question 19:
Price of good X ($) Quantity of good X Demanded Quantity of good X supplied
7000 Q19. Which of the following is true if a $1-per-unit cost of breaking the law is imposed
on both the buyers and sellers? a)
e) 4000 units will be sold at $12 per unit
3000 units will be sold at $12 per unit
3000 units will be sold at $13 per unit
4000 units will be sold at $11 per unit
5000 units will be sold at $13 per unit Page 12 of 33 ©Prep101 www.prep101.com/freestuff Solution: b) 3000 units will be sold at $12 per unit
Buyers: the actual cost at any given quantity increases by $1 and shifts the demand curve
to the left. Buyers are willing to buy 1000 units less at any given price.
Sellers: the actual c...
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This note was uploaded on 08/26/2010 for the course ECON 208 taught by Professor Dickenson during the Fall '07 term at McGill.
- Fall '07