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Consider a policy to help struggling farmers by
setting a minimum trade
this be an effective way to increase their surplus?
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- Imagine that to preserve the traditional way of life in small fishing villages, a government decides to impose a price floor that will guarantee all fishermen a certain price for their catch. Using the demand and supply framework, predict the effects on the price, quantity demanded, and quantity supplied. With the enactment of this price floor for fish, what are some of the likely unintended consequences in the market? Suggest some policies other than the price floor to make it possible for small fishing villages to continue.Assume that the government sets a price floor in the market for wheat and the price floor is set below themarket equilibrium of wheat. Discuss carefully the effectiveness of this policy on the markeConcerned about the political fallout from rising gas prices, suppose that the U.S. government imposes a price ceiling of $3.00 a gallon on gasoline. Explain how the market for gasoline would react to this price ceiling if a global shortage of oil sent the equilibrium price of gasoline to $3.50 a gallon. Would the U.S. gasoline market be efficient?
- Suppose the government imposes a quota on imports of foreign-made steel. Assume that the quota has an effect on the market for steal. The result will be that the domestic price of steel Answer 1 Question 8, the domestic production of steel Answer 2 Question 8, and imports of foreign-made steel Answer 3 Question 8What will happened to Equilibrium Price and quantity if a) Government imposes, import tax to the importers on imported cars b) more cakes are demanded during the month of december due to Christmas. Identify new readjusted market equilibrium, readjusted equilibrium price and quantity for each eventAssume that the government sets a price floor in the market for wheat and the price floor is set below themarket equilibrium of wheat. Discuss carefully THREE points showing effectiveness of this policy on the market.
- The government imposes a price floor in the market for peanuts in order to stabilize or raise farmer's incomes. a) what is the impact on consumer surplus and producer surplus. b) what would happen to the quantity demanded and the quantity supplied of peanuts? c) would the amount of market exchange increase or decrease or remain the same. Please support answers with graph and explain.Assume that the government sets a price floor in the market for wheat and the price floor is set below the market equilibrium of wheat. Discuss carefully by providing three points the effectiveness of this policy on the marketCurrent Stats for Gasoline: Government Enforced Price Ceiling - $4.50/gallon Current Market Equilibrium - $3.00/gallon OPEC, the largest global supplier of oil used to make gasoline, has decided to reduce output by 50%. This policy change is expected to drive up the cost of gasoline to $5.00/gallon. How does that price change interact with the price ceiling? A. Changes the Price Ceiling from Binding to Non-Binding B. Disrupts Oil Supply C. Changes the Price Ceiling from Non-Binding to Binding D. No Change
- Let the following be the supply and demand for coconuts. P 2 3 4 5 6 7 8 9 10 11 12 Qs 100 200 300 400 500 600 700 800 900 1000 1100 QD 550 500 450 400 350 300 250 200 150 100 50 Now imagine that there is a price ceiling on coconuts at $3 but in order to prevent wasting peoples' time by making them wait in line, the government hands out ration coupons to people. In order to buy a coconut you need a coupon. Assume that the number of coupons is the appropriate number to clear the market with the price ceiling (you should know what that is). Now notice that the government probably doesn't know who has the highest marginal value for coconuts so, while this will eliminate the waste from the line it will most likely not…Suppose that you decide to start a new business of making children’s ready-made garments. Make a (Hypothetical) linear supply schedule with 7 different price points and corresponding quantity supplied for your business. Make a graph showing equilibrium, shortage and surplus in the ready-made garments market. Give interpretation of this graph. Suppose cheap ready-made garments are imported from China. Draw a graph to show changes in equilibrium price and quantity for the Pakistani ready-made garments market. Give interpretation of this graph. Suppose that to boost the local industry, the Pakistani government gives subsidy on electricity prices. Draw a graph to show changes in equilibrium price and quantity. Give interpretation of this graph. Suppose that cheap cloth is imported from China for production of readymade garments and at the same time tourism in Pakistan increases bringing many more buyers of ready-made garments in the market. What will be impact on equilibrium price and…What is a Price Flooring? If the government mandates a maximum price in the jute market, how is it going to affect the consumer’s and producer’s surplus? Explain with the help of a diagram.