Question

11. Sherry wants to rent an apartment. Although rents are below what she is willing to pay, she cannot find an apartment. Then after a month of searching, she finds an apartment but she has to pay an additional $1,000 to have the locks changed. Sherry has just experienced the effects of ________. A) a rent floor with a black market B) inelastic demand C) a market working efficiently D) a rent ceiling 12. A price floor A) always results in a surplus. B) always results in a shortage. C) results in a surplus if the floor price is higher than the equilibrium price. D) results in a shortage if the floor price is higher than the equilibrium price. 13. The total benefit that a person receives from the consumption of goods and services is called A) total utility. B) marginal utility. C) marginal cost. D) opportunity cost. 14. Sonya's budget for magazines and chocolate bars is $50. Her marginal utility from these goods is shown in the table above. The price of a magazine is $5 and the price of a chocolate bar is $2.50. Sonya currently buys 3 magazines and 14 chocolate bars. To maximize her utility, she should A) buy more chocolate bars and fewer magazines. B) buy more magazines and fewer chocolate bars. C) buy more of both goods. D) stay with the current combination of goods. 15. For a consumer, a budget line shows the boundary between A) what is desired and what is not desired. B) what is needed and what is not needed. C) what is affordable and what is not affordable. D) what is available and what is not available.. FOR QUESTION 14 THERE IS NO TABLE GIVEN I DO NOT KNOW WHY THEY SAY THAT BUT THERE IS NO IVEN TABLE

Answer 1

11. D) a rent ceiling

Rent Ceiling is The maximum price that a landlord can charge for rent.Rent ceilings are usually set by law and limit how high the rent can go in a specified area. However, as a result of this regulation, the quantity of available housing is often decreased because landlords are not willing to rent out their property for a low price.

12. A) always results in a surplus.

A price floor is the lowest legal price a commodity can be sold at. Price floors are used by the government to prevent prices from being too low.For a price floor to be effective, it must be set above the equilibrium price. If it's not above equilibrium, then the market won't sell below equilibrium and the price floor will be irrelevant. 13.A) total utility Total utility is the total satisfaction received from consuming a given total quantity of a good or service. 14. D) stay with the current combination of goods. The table which is missing, is provided below: With current combination of goods Sonya is enjoying maximum utility , where total utility is 34(dervied from 3 magazines) + 17( Derived from 14 chocolate bars) = 51. Buy more or less of any or both of magazine or chocolate will decrease sonya's utility. 15. C) what is affordable and what is not affordable A budget line  represents all the combinations of goods and services that a consumer may purchase given current prices within his or her given income. It depends on the purchasing power of buyer, which he can afford and which he can't.