Does the price control mechanism (price floor and price sealing) to a resource shortage provide an example of a positive or a negative feedback loop? Why?
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- Market: Airline-TicketsScenario: During A Pandemic Carriers have radically reduce air-fare prices for international flights causing a three-percent(3%) increase in sales(tickets-revenue).At the same time, because of the aforementioned pandemic there have been eleven-percent(11%) reduction in demand for international-air-travel.Using the list of options of possible impacts, select what is happening in the following markets. Select the impact if any on:i.Supplyii.Priceiii.Quanityiv.DemandIf the costs of producing tomatoes increase, predict the impact on tomato prices, using the supply and demand framework. Group of answer choices -no change in price -price decreases -I don't know. -price increasesSuppose the market for hamburgers is unregulated. That is, hamburger prices are free to adjust based on the forces of supply and demand. If a shortage exists in the hamburger market, then the current price must be ________ than the equilibrium price. For the market to reach equilibrium, you would expect ___________ .
- Which of the following will affect natural resources pricing? a. Whether the resource is finite or renewable. b. Whether substitutes are available. c. Whether technical advances decrease the resources’ marginal extraction costs. d. All of the above.When a market is competitive and functioning properly, economic theory predicts that the market equilibrium will be efficient. However, this may not always be the desired outcome. Market outcomes may be unequal or distorted by market failure. Offer an example of a market where you consider the real-world outcome to be unacceptable. Why is the market outcome unacceptable? How can government policy improve on the market equilibrium? Will this solution create a surplus or shortage in the market according to economic theory? Explain. What effect will this solution have on consumer surplus, producer surplus, social surplus, and deadweight loss? Explain.Consider a market equilibrium is a price = $2 and quantity = 100 units in the market for hand sanitizer. Based on this information, answer the next three questions. What could the price in this market be if the government implemented an effective price ceiling? Will there be any excess supply or demand? Provide at least one more example of how consumers or producers will respond to the price control (think unintended consequences).
- In a perfectly competitive market, the market demand curve isQd=10-pd, and the market supply curve is Qs=1.5Ps . What is the equilibrium price and quantity in the absence of government intervention?using the diagram below defent thr point that a free market will always move from disequilibrium to equilibrium according to demand and supply theory Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.During natural disasters such as the flooding in Burma one policy choice is to do nothing, i.e. let prices rise and fall according to increases and decreases in supply and demand. A second policy choice is to interfere in the market, regulate prices, and prevent the price of goods such as corrugated steel roofing, gasoline, nails, water, food, etc. from rising. The argument frequently made to justify regulating prices is that owners of scarce goods are taking advantage of people in need----taking advantage of innocent people's misfortunes to steal their money and enrich themselves. This is immoral behaviour and should not be allowed. This second policy usually includes a reliance on government rather than the free market to bring in supplies of scarce goods and distribute them for free or at below market prices to alleviate shortages.
- Question 16 Refer the to graph below to answer Questions 16-18 In the graph above, if the minimum price is set at P1, what area(s) represent the producer surplus after the implementation of this policy? Question 16 options: a) Areas B+C+E+F b) Areas B+E c) Areas E+F d) Area E e) Area B Question 17 In the graph above, if the minimum price is set at P1, what will limit the quantity of the good that is sold? Question 17 options: a) Demand b) Supply c) A government quota d) Consumer surplus e) Producer surplus Question 18 In the graph above, if the minimum price is set at P1, what area(s)…Why would raising the minimum wage to $15/hour positively impact the macroeconomy in the short run? Explain why raising the minimum wage to $15/hour would adversely affect the macroeconomy in the short run. What are the primary considerations for both alternatives? why is it important to consider the effects of minimum wage laws in microeconomics? Please explain these questions in detailed (250 words)Referring to question 2: Suppose the government imposes a $40 price floor. If this price floor is binding, it would lead to a ____ of _____ units of output in the market. Group of answer choices shortage; 100 shortage; 200 surplus; 100 surplus; 200
