Question

Please kindly answer the following questions

The following are correct statements about the effects coming from a Price Floor regulation on a certain market, EXCEPT:

Question 19 options: (Answer is not A)

	A) The regulated price prevailing will be higher than the price in equilibrium.
	B) A Deadweight loss will be generated
	C) The consumers will always be worse off
	D) The producers will always be worse off

As a result of an expected increase in the price of gasoline in the near future, the followings are likely effects, EXCEPT:

Question 15 options: (Answer is not C)

	A) A shift up of the current supply curve for gasoline.
	B) A shift up of the current demand curve for gasoline.
	C) An increase today of the price of gasoline in equilibrium
	D) A decrease today, but increase tomorrow, of the price for gasoline in equilibrium.

The following factors could likely Shift Down the Supply Curve for certain good X,  EXCEPT:

Question 14 options: (Answer is not A)

	A) A decrease in the cost of labor used in production of good x.
	B) A technological innovation in production of good x.
	C) An increase in the market price for an alternative product Pw.
	D) An increase of subsidies on production of good x.

The following are correct descriptions about the Supply Curve for certain good X, EXCEPT:

Question 13 options: (Answer is not C)

	A) It is the minimum price producers are willing to accept for any unit produced of good X.
	B) It reflects the segment of production with decreasing marginal cost.
	C) Reflects the optimal level of production for any given Px.
	D) Reflects the producer's decision to produce up to the point where market price equals marginal cost of production.

The following are correct descriptions of the Demand Curve, EXCEPT:

Question 11 options: (Answer is not A)

	A) It describes the maximum price the consumer is willing and able to pay, given certain preferences, income and prices for other goods.
	B) Decreasing marginal cost in production can explain the negative slope of the demand curve.
	C) As price increases, the quantity consumed is expected to decline due to an income and substitution effects.
	D) The Demand Curve for good x reflects the optimal choice of consumers about Qx given any Px.

Answer 1

Ans. 19 D) the producer will always be worse off

A price floor regulation is a minimum price set by the government above the equilibrium price at this level producer surplus will increase.

Ans. 15 D) A decrease today, but increase tomorrow, of the price for gasoline in equilibrium

An equilibrium price of gasoline will increase today when shifting in either demand or supply curve.

Ans. 14 c) An increase in the market price for an alternative product Pw

when the price of alternative product increases, supply for a certain good x will decrease and lead to an upward shift in supply because alternative good will be profitable to produce at a higher price

Ans.13 B) It reflects the segment of production with decreasing marginal cost

supply curve reflects the segment of production with increasing marginal cost

Ans. 11 B) Decreasing marginal cost in production can explain the negative slope of the demand curve

the law of diminishing marginal utility explains the negative slope of the demand curve.