1. Refer to Table. Suppose that as a public-health measure the government wants to reduce the...

  

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1. Refer to Table. Suppose that as a public-health measure the government wants to reduce the number of chocolate bars children consume. To achieve this outcome the government could implement which of the following policies? Explain your answer fully. A) Impose an equilibrium price of $1.80. B) Impose a price floor of $1.80. C) Impose a price ceiling of $1.80. D) Impose an equilibrium price of $1.20. (3 pts) 2. Refer to Table. Suppose the government imposed a price of $0.60 per chocolate bar. What would be the impact of this on the market equilibrium price and quantity? Explain why the market will react that way. (3 pts) 3. Refer to Table. Suppose the government imposed a price of $1.80 per chocolate bar. What would be the impact of this on the market equilibrium price and quantity? Explain why the market will react that way. (3 pts) 4. Refer to Table. Suppose the government established a price floor of $1.00 per chocolate bar. How many thousands of chocolate bars would be exchanged per week? Explain your answer. (3 pts) Demand and Supply Schedules for Chocolate Bars Quantity Demanded (thousands per week) Price ($) 2.00 1.80 1.60 1.40 1.20 1.00 0.80 0.60 0.40 1500 1600 1700 1800 1900 2000 2100 2200 2300 Quantity Supplied (thousands per week) 2100 2050 2000 1950 1900 1850 1800 1750 1700 1. Refer to Table. Suppose that as a public-health measure the government wants to reduce the number of chocolate bars children consume. To achieve this outcome the government could implement which of the following policies? Explain your answer fully. A) Impose an equilibrium price of $1.80. B) Impose a price floor of $1.80. C) Impose a price ceiling of $1.80. D) Impose an equilibrium price of $1.20. (3 pts) 2. Refer to Table. Suppose the government imposed a price of $0.60 per chocolate bar. What would be the impact of this on the market equilibrium price and quantity? Explain why the market will react that way. (3 pts) 3. Refer to Table. Suppose the government imposed a price of $1.80 per chocolate bar. What would be the impact of this on the market equilibrium price and quantity? Explain why the market will react that way. (3 pts) 4. Refer to Table. Suppose the government established a price floor of $1.00 per chocolate bar. How many thousands of chocolate bars would be exchanged per week? Explain your answer. (3 pts) Demand and Supply Schedules for Chocolate Bars Quantity Demanded (thousands per week) Price ($) 2.00 1.80 1.60 1.40 1.20 1.00 0.80 0.60 0.40 1500 1600 1700 1800 1900 2000 2100 2200 2300 Quantity Supplied (thousands per week) 2100 2050 2000 1950 1900 1850 1800 1750 1700

Answer rating: 100% (QA)

1 Correct option C impose a price floor of 180 Reason Price floor is the minimum price that is set b... View the full answer