A price ceiling will have NO immediate effect if: a. it is set above the equilibrium price. b. the equilibrium price is above th
e price ceiling. c. it is set below the equilibrium price. d. it creates a shortage.
1 answer:
Answer:
A. Set above equilibrium price
Explanation:
A price ceiling is a mandatory maximum price that a seller is allowed to charge. Generally, a government may impose this in order to protect consumers, especially with regards to the purchase of essential goods.
If the price ceiling was set below the equilibrium price (option c) or if the equilibrium price is above the price ceiling (option b), it will immediately cause a shortage (option d) since the quantity demanded would be higher than the quantity supplied when the price falls. This is because people will be willing to purchase more since it is cheaper but suppliers will be willing to produce less due to lower profits. Hence, options b, c and d are eliminated.
Option A is correct because... (please refer attached diagram):
When the price ceiling is above the equilibrium price, suppliers are willing to supply more since they can make higher profits but consumers will reduce purchasing since it is expensive. However, it does not cause any immediate effect because it takes time for suppliers to be able to produce more and cannot be done immediately unless anticipated in advance. In the long run however, quantity demanded will fall from equilibrium quantity to D1 and quantity supplied will rise from equilibrium quantity to S1. Hence, causing a surplus between D1 - S1 in the long run.
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Answer:
The vectors does not span R3 and only span a subspace of R3 which satisfies x+13y-3z=0
Explanation:
The vectors are given as
Now if the vectors would span the , the rank of the consolidated matrix will be 3 if it is not 3 this indicates that the vectors does not span the
.
So the matrix is given as
In order to calculate the rank, the matrix is reduced to the Row Echelon form as
As the Rank is given as number of non-zero rows in the Row echelon form which are 2 so the rank is 2.
Thus this indicates that the vectors does not span
<em>Now for any vector the corresponding equation is formulated by using the combined matrix which is given as for any arbitrary vector and the coordinate as </em>
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Now converting the combined matrix as
From this it is seen that whatever the values of the coordinates does not effect the value of the plane with equation as
So it is verified that the subspace of R3 such that it satisfies x+13y-3z=0 consists of all vectors.
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