Chapter 4: Q. c (page 81)
How might California cities alternatively have developed a rationing-by-queues approach using the internet?
Using real-time settlements system
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Consider Figure 4-3.Suppose that the government
reduces the ceiling price to\(500 per unit.Would
the shortage at the\)500-per-unit ceiling price be
greater than at the$600-per-unit price ceiling?
Advances in research and development in the pharmaceutical industry have enabled manufacturers to identify potential cures more quickly and therefore at lower cost. At the same time, the aging of our society has increased the demand for new drugs. Construct a supply and demand diagram of the market for pharmaceutical drugs. Illustrate the impacts of these developments, and evaluate the effects on the market price and equilibrium quantity.
How do you suppose that when soft drink sellers introduced cans containing 7.5 ounces of soft drink to sell alongside traditional 12-ounce cans, they managed to offer the soft drinks in the smaller cans at prices that were several cents higher per ounce of soft drink?
Suppose that Figure 4-5 applies to the labor market in
the state of Ohio,in whichW,is the minimum wage
established by the federal government,andQ,-Qa
therefore is Ohio's excess quantity of labor supplied as
aresult of the federal wage minimum.What would
happen to Ohio's excess quantity of labor supplied if
the state were to decide to establish its own minimum
wage atalevel above the federal minimum?
Consider the information in Problem 4-9 and your
answers to that question.Suppose that the market
clearing price of Pakistani wheat in the absence of
price supports is equal to$0.10 per kilogram.At
this price,the quantity of wheat demanded is 12
billion kilograms.Under the government wheat
price-support program,how much more is spent
each year on wheat harvested in Pakistan than oth
erwise would have been spent in an unregulated
market for Pakistani wheat?
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