Principles of Microeconomics 7th Edition solutions

Principles of Microeconomics 7
Lovers of classical music persuade Congress to impose a price ceiling of $40 per concert ticket. As a result of this policy, do more or fewer people attend classical music concerts? Explain

Principles of Microeconomics 7
The government has decided that the free-market price of cheese is too low.a.Suppose the government imposes a binding price floor in the cheese market. Draw a supply-and-demand diagram to show the effect of this policy on the price of cheese and the quantity of cheese sold. Is there a shortage or sur

Principles of Microeconomics 7
A recent study found that the demand and supply schedules for Frisbees are as follows: Price per FrisbeeQuantity DemandedQuantity Supplied$11 1 million Frisbees 15 million Frisbees10 2129 498 667 836 101a.What are the equilibrium price and quantity of F

Principles of Microeconomics 7
Suppose the federal government requires beer drink-ers to pay a $2 tax on each case of beer purchased. (In fact, both the federal and state governments impose beer taxes of some sort.) a.Draw a supply-and-demand diagram of the market for beer without the tax. Show the price paid by consumers, the pri

Principles of Microeconomics 7
A senator wants to raise tax revenue and make work-ers better off. A staff member proposes raising the payroll tax paid by firms and using part of the extra revenue to reduce the payroll tax paid by workers. Would this accomplish the senators goal? Explain

Principles of Microeconomics 7
f the government places a $500 tax on luxury cars, will the price paid by consumers rise by more than $500, less than $500, or exactly $500? Explain

Principles of Microeconomics 7
Congress and the president decide that the United States should reduce air pollution by reducing its use of gasoline. They impose a $0.50 tax on each gallon of gasoline sold.a.Should they impose this tax on producers or consumers? Explain carefully using a supply-and-demand diagram.b.If the demand fo

Principles of Microeconomics 7
A case study in this chapter discusses the federal minimum-wage law. a.Suppose the minimum wage is above the equilib-rium wage in the market for unskilled labor. Using a supply-and-demand diagram of the market for unskilled labor, show the market wage, the number of workers who are employed, and the

Principles of Microeconomics 7
At Fenway Park, home of the Boston Red Sox, seat-ing is limited to 39,000. Hence, the number of tickets issued is fixed at that figure. Seeing a golden oppor-tunity to raise revenue, the City of Boston levies a per ticket tax of $5 to be paid by the ticket buyer. Boston sports fans, a famously civic-

Principles of Microeconomics 7
A subsidy is the opposite of a tax. With a $0.50 tax on the buyers of ice-cream cones, the government collects $0.50 for each cone purchased; with a $0.50 subsidy for the buyers of ice-cream cones, the government pays buyers $0.50 for each cone purchased.a.Show the effect of a $0.50 per cone subsidy