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Demand rises by 1500 and shifts the demand curve to

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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 11 5000 3000 12 4000 4000 13 3000 5000 14 2000 6000 15 1000 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) b) c) d) 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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