- Ency And Market Distortions Practice Quiz The Table Below Presents The Average Monthly Demand And Supply Of 4 X 8 She 1 (47.55 KiB) Viewed 18 times
- Ency And Market Distortions Practice Quiz The Table Below Presents The Average Monthly Demand And Supply Of 4 X 8 She 2 (37.69 KiB) Viewed 18 times
ency and Market Distortions: Practice Quiz The table below presents the average monthly demand and supply of 4' x 8' sheets of plywood from a typical home building supply store. In any month when coastal states such as Florida are threatened by hurricanes, the typical monthly demand for plywood increases by 400 sheets at every price. Imagine Florida passes a "price gouging" law that prevents home building supply stores from raising the price of plywood when hurricanes threaten. Market for Plywood Price (dollars) $10 11 12 13 14 15 16 17 18 19 20 21 Initial Initial Quantity of Quantity of New Quantity of Plywood Plywood Demanded (sheets) 6,700 6,500 6,300 6,100 5,900 5,700 5,500 5,300 5,100 4,900 4,700 4,500 Plywood Supplied (sheets) 3,900 4,100 4,300 4,500 4,700 sheets 4,900 5,100 5,300 5,500 5,700 5,900 6,100 Demanded (sheets) 7,100 6,900 6,700 6,500 6,300 6,100 5,900 5,700 5,500 5,300 5,100 4,900 Instructions: Enter your answers as a whole number. a. When there are no hurricanes threatening Florida, and without the "price gouging" law in place, what are the equilibrium price and quantity in the plywood market? P= $ Q= b. When hurricanes threaten Florida, and without the "price gouging" law in place, what are the equilibrium price and quantity in the plywood market? P= $
17 18 19 20 21 5,300 5,100 4,900 4,700 4,500 sheets Instructions: Enter your answers as a whole number. a. When there are no hurricanes threatening Florida, and without the "price gouging" law in place, what are the equilibrium price and quantity in the plywood market? P=$ sheets 5,300 5,500 5,700 Q= b. When hurricanes threaten Florida, and without the "price gouging" law in place, what are the equilibrium price and quantity in the plywood market? P=$ 5,900 6,100 sheets 5,700 5,500 5,300 5,100 4,900 sheets Q= c. When hurricanes threaten Florida, and with the "price gouging" law in place, what are the market price of plywood, the quantity demanded of plywood, and the quantity supplied of plywood? P=$ Qd=[ Qs= d. If the "price gouging" law goes into effect, the result of the law during hurricane season will be to create a Oshortage of 600 sheets of plywood. O shortage of 400 sheets of plywood. O surplus of 400 sheets of plywood. O surplus of 600 sheets of plywood.