# Macroeconomics

I’m studying for my Economics class and don’t understand how to answer this. Can you help me study?

I need a tutor to help me with my ECO2023 – Microeconomics class this semester from January through May of 2020. Also, i have an assignment that i need completed by today. Use the attached PDF of the Principles of Microeconomics book to help you with every assignment.

Today: Complete the entire 1.A.6 , 1.A.7 , and 1.A.9 sections on the attached word document. Answer each question correctly with complete information and answer each sub-question that goes along with each question.

1.A.6.

Read Chapter 6, Price Controls. Stop when you get to taxes.

In the last chapter, we learned how and why markets come to an equilibrium. In this chapter, we consider the impact of price controls. The law of supply and demand means that markets will always try to get to equilibrium. But when it can’t get there (like when there is a binding price control), it will get as close as possible. Before you start this assignment, make sure you read the part of section 6 that deals with price controls and pay careful attention to the difference between price floors and price ceilings and the difference between a binding and nonbinding price control (both for floors and ceilings).

Consider the following supply and demand schedule for the market for fast food workers. When there are price controls, please note that the price (the wage) charged in the market might not be the same as the equilibrium price (wage). Think about what price (wage) people will ACTUALLY earn and businesses will ACTUALLY pay in each of the situations described below.

 Supply Schedule Demand Schedule Price (Wage) QS Price(Wage) QD 10 20 10 15 9 18 9 16 8 17 8 17 7 15 7 18 6 12 6 19 5 8 5 20
• What is the equilibrium price and quantity?
• Is the minimum wage an example of a price floor or a price ceiling?
• If the minimum wage were \$10, what wage would be charged in the market?
• If the minimum wage were \$10, what would be the quantity of labor supplied?
• If the minimum wage were \$10, what would be the quantity of labor demanded?
• If the minimum wage were \$10, what would be the quantity of labor hired?
• If the minimum wage were \$10, would there be a shortage, a surplus, or would the market clear?
• If the minimum wage were \$7, what wage would be charged in the market?
• If the minimum wage were \$7, what would be the quantity of labor supplied?
• If the minimum wage were \$7, what would be the quantity of labor demanded?
• If the minimum wage were \$7, what would be the quantity of labor hired?
• If the minimum wage were \$7, would there be a shortage, a surplus, or would the market clear?

1.A.7

• What is the formula for consumer surplus, for producer surplus, and for total surplus?
• Complete the table by calculating consumer surplus, producer surplus and total surplus for each of the following transactions.
Key: P = Price, WTP = willingness to pay, Cost = cost to produce
• Draw a generic supply and demand diagram (do NOT try to use the information from #1!). Label each axis, the demand curve, the supply curve, the equilibrium price, and the equilibrium quantity. Label the consumer surplus, producer surplus, and total surplus.
 Quantity Willingness to Pay Price Cost to Produce Consumer Surplus for this transaction Producer Surplus for this transaction Total Surplus for this transaction First good 10 6 4 Second good 8 6 5 Third good 6 6 6 Fourth good 4 6 7

The most important thing about this chapter is that it teaches that the market outcome (the equilibrium) is efficient. Carefully read section 7-3b: Evaluating the market equilibrium. In a few sentences, explain why markets are efficient.

1.A.9