$Q _ { s } = 40 + 6 P - 8 P _ { I } + 10 F$

question 65

Multiple Choice

$Q _ { s } = 40 + 6 P - 8 P _ { I } + 10 F$ where $Q _ { s }$ is the quantity supplied of the good, P is the price of the good, $P _ { I }$ is the price of an input, and F is the number of firms producing the good.
-Suppose $P _ { I }$ = $40, F = 50, and the demand function is $Q _ { d } = 700 - 6 P$ , then if government sets a price of $50 what will be the result?

• A) a shortage of 120
• B) a surplus of 120
• C) a shortage of 160
• D) a surplus of 160

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Definitions:

Earned Income Tax Credit

A refundable tax credit for low- to moderate-income working individuals and families, aimed at reducing poverty and incentivizing work.

Welfare Mothers

A term that refers to women who receive welfare benefits, often used in discussions regarding public assistance programs.

Child Poverty Rate

The proportion of children living in households with an income below a certain threshold, indicating economic hardship.

Sweden

A Nordic country in Northern Europe known for its high standard of living, comprehensive welfare system, and advanced social and economic structures.