### Using standard demand and supply analysis

##### Reference no: EM131244520

Assume that books were sold in a perfectly competitive market. In response to consumer complaints about the high price of books, the government imposes a binding (effective) price ceiling.

a. In order to be effective, where must the price ceiling be set?

b. Using standard demand and supply analysis, graphically illustrate the impact of the price ceiling on the number of books purchased.

c. Identify the change in consumer surplus from the price ceiling. (Ignore the possibility of a black market.)

d. Will the price ceiling cause consumer expenditure on books to increase or decrease? Explain

#### Equation for the demand curve facing cereal makers

A unit circle representing the dimension of ”mouth feel” in breakfast cereals has 200 con- sumers spread uniformly along it. All consumers buy either one package of cereal a w

#### The only sure things in life are death and taxes

As the saying goes, "the only sure things in life are death and taxes." This saying points out the result that everything having to do with taxes is an automatic fiscal policy

#### The harrod-domar model is based on the assumption

The Harrod-Domar model is based on the following assumption(s): A person borrows \$10,000 today at a nominal interest rate of 5%; inflation for the past 10 years has always bee

#### What is the level of real money supply

Derive the IS relation. (Hint: You want an equation with Y on the left side and everything else on the right.) The central bank sets an interest rate of 5%. How is that decisi

#### Calculate the total change in the money supply

Assume that the Fed decided engages in an open market purchase of \$100 million dollars. If the required reserve ratio is 10%, and if banks hold an additional 2% of their asset

#### In the replacement analysis under various circumstances

In the replacement analysis under various circumstances. Briefly summarize what your text calls Techniques 1 (Is Appropriate When Replacement Repeatability Assumptions Hold),

#### Who has the absolute advantage in production of airplanes

Suppose the following table shows the number of labor hours needed to produce airplanes and automobiles in the united states and south korea, but one of the numbers is unknown

#### Would a tuition increase raise the rate of unemployment

Labor Supply. Catholic priests take a vow of chastity, forgoing marriage and intimate non-marital relationships. This question relates to the article posted