3. The U.S. government introduced a variety of price controls in the 1970s, including controls on gasoline prices. The result was long lines at the pumps for fuel. If the government had not instituted the price controls, what would have happened?
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- 1. The government imposes a price floor in the market for peanuts in order to stabilize or raise farmer's incomes. a) what would happen to the quantity demanded and the quantity supplied of peanuts? b) would a shortage or surplus results? Show the shortage or surplus in your graph. c)would the amount of market exchange increase or decrease or remain the same? Explain carefully.1.To what extent should the government intervene in the market? ...(ii) Discuss the effect on the markets for sugarcane, rum and whiskey, if the government implements a price restriction in the sugar cane market with the aim of protecting the farmers. How will this impact the revenues for sugar growers, rum producers and whiskey producers?
- Consider the market for plywood in a costal Florida town, which was hit by a hurricane. The residents need to rebuild their houses and are buying plywood in large quantities. To keep the price of plywood from going up too high, the Governor of Florida has decided to impose price controls in the wake of the hurricane. What is the most likely outcome?a. People will be able to obtain the plywood that they need. b. Plywood suppliers from out of state will increase deliveries to Florida to take advantage of the strong demand. c. There will be persistent excess demand for plywood. d. Quantity supplied will increase to meet new demand.1.Discuss an alternative method of solving price gouging. Use diagrams to support your discussion. 2.Would the imposition of a price ceiling be an effective solution to price gouging.Are Prohibitions Against Price Gouging Good or Bad? What happens to the prices of items like generators, fuel, plywood and ice during natural disasters? Explain. (Note: Supply and demand analysis is helpful here.) Should government impose price controls? If the controls keep the prices from rising, how will this affect the flow of these items into the disaster area?
- 1. Use the data from the chart above. If you are a seller in this business, what would happen tomarket supply if the government sets a price ceiling below P30?Give typing answer with explanation and conclusion 5.)What happens if a government imposes price controls that require a selling price that is BELOW the equilibrium price? A. A SHORTAGE results—a shortage then puts a pressure on prices to DROP B. A SHORTAGE results—a shortage then puts a pressure on prices to RISE C. A SURPLUS results—a surplus then puts a pressure on prices to DROP D. A SURPLUS results—a surplus then puts a pressure on prices to RISE2 . Supermarkets, and grocery stores Assume the Government chose to set a price control on the products in your industry, would it be more likely to be a price floor or a price ceiling? What are your reasons for your answer?
- After Hurricane Katrina damaged many U.S. gasoline refineries in 2005, the price of gasoline shot up around the country. The Federal Trade Commission announced that it would investigate price gouging—charging "too much"—and several members of Congress called for price controls on gasoline. What would have been the likely effect of such a law had it been passed? Part 2 Price controls on gasoline would have Part 3 A. benefited all consumers because gas prices would have been lower. B. benefited all consumers because there would have been no surpluses. C. resulted in a market equilibrium because gas would have been affordable. D. resulted in a shortage because refiners would have shut down their plants in protest. E. resulted in a shortage because demand would have exceeded suppl2 What generally happens when the government sets a price ceiling?Question The below graph shows the market of air tickets per month with no Government intervention What are the Price and Quantity of Equilibrium? Calculate total Surplus at equilibrium. The government intervenes by setting a maximum price to be sold of 350$. What type of Price control is it? Who is it supposed to gain and lose from this intervention? Will this create a surplus or shortage? Calculate
