# Correct answer the quantity supplied is less than the

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Correct Answer: the quantity supplied is less than the economically efficient quantity. Question 10 0 out of 0.5 points Figure 4-3 Figure 4-3 shows the
market for tiger shrimp. The market is initially in equilibrium at a price of \$15 and a quantity of 80. Now suppose producers decide to cut output to 40 in order to raise the price to \$18. Refer to Figure 4-3 . What is the value of consumer surplus at a price of \$18?? Answer Selected Answer: \$240 Correct Answer: \$60 If the quantity of nail polish supplied is represented by the equation Q S = -3 + 2 P then the corresponding price of nail polish is represented by the equation Answer Selected Answer: P = 0.5 Q S + 1.5. Correct Answer: P = 0.5 Q S + 1.5. Question 2 0.5 out of 0.5 points
Figure 4-4 Refer to Figure 4-4. The figure above represents the market for pecans. Assume that this is a competitive market. Which of the following is true? Answer Selected Answer: Both 40,000 pounds and 12,000 pounds are economically inefficient rates of output. Correct Answer: Both 40,000 pounds and 12,000 pounds are economically inefficient rates of output. Question 3 0.5 out of 0.5 points ________ refers to the reduction in economic surplus resulting from not being in competitive equilibrium. Answer Selected Answer: Deadweight loss Correct Answer: Deadweight loss Question 4 0.5 out of 0.5 points Table 4-3
Table 4-3 shows the demand and supply schedules for the low-skilled labor market in the city of Westover. Refer to Table 4-3. If a minimum wage of \$9.50 an hour is mandated, what is the quantity of labor demanded? Answer Selected Answer: 360,000 Correct Answer: 360,000 Question 5 0.5 out of 0.5 points If the government implements a price ceiling on insulin, this will have all of the following effects on the market for insulin except Answer Selected Answer: a more efficient equilibrium Correct Answer: a more efficient equilibrium Question 6
0.5 out of 0.5 points Figure 4-6 Figure 4-6 shows the demand and supply curves for the coffee market. The government believes that the equilibrium price is too low and tries to help almond growers by setting a price floor at \$7.00. Refer to Figure 4-6 . What is the value of consumer surplus after the imposition of the price floor? Answer Selected Answer: \$1,500 Correct Answer: \$1,500 Question 7 0 out of 0.5 points Suppose there are two cities that have rent controlled apartments. In one city (Albany) all apartments are subject to rent control; in the
other city (Halftrack) one- half of the apartments are rent controlled. Which of the following is most likely to be true? Answer Selected Answer: It will be easier to find an affordable apartment in Albany since rents will be low across the board. Correct Answer: It will be difficult to find a rent-controlled apartment in Albany or Halftrack; rents for the Halftrack apartments not subject to controls will be higher than they would be without rent control.