Practice Questions ch7-9 (1)

# Practice Questions ch7-9 (1) - PRACTICE QUESTIONS; MATH-...

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PRACTICE QUESTIONS; MATH- BASED; 21:220:101:03; INTRO MICRO 1. The table above gives the demand and supply schedules for the housing market in a small town. If a rent ceiling of \$600 a month is imposed, what is the quantity demanded, the quantity supplied, and the shortage of housing? 2. The figure below illustrates the current market for apartments in Washington, D.C. Now answer the questions below. a. If the local government imposes a price ceiling of \$1,500 per month, is there a shortage? If so, by how much and if not, why b. If the local government imposes a price ceiling of \$900 per month, is there a shortage? If so, how much, if not, why not 3. The figure below shows the market for a prescription drug. What is the equilibrium price of this drug? How many doses are purchased at equilibrium? Suppose the government imposes a price ceiling of \$1.50 a dose. How many doses are purchased after the price ceiling is imposed?

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4. The table below gives the supply and demand schedules for scooters. Because of increased injuries sustained by children riding scooters, Citizens Against Scooter Accidents successfully lobbies the government to impose a price floor of \$80.00 on scooters. a. What is the quantity demanded and supplied after the price floor has been imposed? b. If the price floor is raised to \$110.00, what is the quantity demanded and supplied? c.
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## This note was uploaded on 03/15/2012 for the course ECONOMICS 101 taught by Professor June during the Spring '08 term at Rutgers.

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Practice Questions ch7-9 (1) - PRACTICE QUESTIONS; MATH-...

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