If the government enacts legislation which allows lenders to lower lending standards, the government indirectly___________ the demand for which leads to _________ house prices.

Q: Suppose the government imposes a price floor of $60. This price floor is supplied will be and the…

A: A price floor is a type of price control. A price floor is a lower limit on the price that is…

Q: If the government imposes a unit sales tax (i.e., $ tax per unit sold) on a product, which one,…

A: The effect of the tax on the supply-demand equilibrium is to shift the quantity toward a point where…

Q: If government spending is paid for with lump-sum taxes, then in the competitive equilibrium: MRSIC =…

A: The answer is - MRSI,C = MRTI,C N and GDP have increased, but C has decreased. For an example, there…

Q: Describe the short-run and long-run implications to the economic climate if the government in Mexico…

A: The GDP has one major drawback which results in the fact that the GDP does not include the…

Q: e figure below represents the market for Gasoline, where initially the equilibrium price was $5.60.…

A: Answer is given below

Q: Describe the short-run and long-run implications to the economic climate if the government does…

A: Long-run self-adjustment is the mechanism whereby an economy returns to full employment efficiency…

Q: The government has decided that the free-market price of cheese is too low.a. Suppose the government…

A: part a)When price floor is imposed by the government to protect the interest of the farmers, demand…

Q: Governments tend to like to tax goods with inelastic demands. Why

A: Answer to the question is as follows:

Q: [Basic static analysis of tax] Draw a simple model of the retail market for petrol in Australia.…

A: Retail refers to the selling of products and services to consumers, as opposed to wholesale, which…

Q: We can expect that government price floors will eventually lead to

A: A price floor is the price controlling technique used by the government to prevent prices from…

Q: Suppose, OPEC decides to cut down oil production, causing oil price to go up. a. Explain with the…

A: Given that OPEC decides to cut down oil production, causing oil price to go up.  a. If OPEC decides…

Q: and the price thai A. doesn't change; doesn't change B. doesn't change; rises by $1 a can C.…

A: 3. Compared to the old total surplus, the new total surplus will be less by the amount of the tax…

Q: What would be the effect of a decrease in government taxes on a good's supply curve, ceteris…

A: Answer: A decrease in tax will lead to a decrease in the cost of production. As a result, the supply…

Q: BEFORE the imposition of the tax, the quantity traded in this market is [ Select ] the buyers pay (…

A: Before the tax, the equilibrium is attained where D and S intersect each other. The equilibrium…

Q: INT: Sketch the supply and demand equations. e to good weather, there is an increase in the demand…

A: *Answer:

Q: If the government got rid of sales tax, how might this affect the market? shift AD to the right…

A: When the government rid of sales tax, then the price of the goods decreases. Decreasing price leads…

Q: policy?

A: Resource allocation is the process of managing and assigning of assets in a manner which supports…

Q: When the government imposes a binding price floor,it causesa. the supply curve to shift to the…

A: When Govt. decides to set a new minimum level of price where firms have to sell goods then it is…

Q: A binding price floor causes a. Demand and supply is the same b. Shortage c. No shortage of surplus…

A: In a market, price control policy of the government to protect any of the market participants and…

Q: If the government removes a tax on a good, then the quantity of the good sold will______.

A: The answer to the question is as follows :

Q: Instructions: Adjust the sliders so that the vertical intercept of the supply curve is $22.00 and…

A: As per the given instructions, we adjust the demand and supply curve such that the vertical…

Q: Describe how government intervention affects the supply and demand equilibrium

A: Demand and supply in perfectly competitive market In perfect market competition, the market tis free…

Q: TRUE/FALSE Barro is considered to be a supply side economist which is consistent with his idea that…

A: Supply-side economics is a situation when the production and the producers in an economy have supply…

Q: Determine how the following government policy will move the equilibrium point.Choose the one best…

A: Government spending refers to the expenditure incurred by the government or the Public sector for…

Q: When supply is perfectly elastic, who bears the burden of tax? Select one: a. producers b.…

A: The burden of the tax falls on that side of the market (consumer or producer) which is relatively…

Q: To say that a market is in equilibrium implies that: Select one: a.the market allocates goods…

A: Equilibrium occurs at the intersection of demand and supply curves. Market forces of demand and…

Q: A government has to safeguard its markets. Explain how subsidies play a major role in stabilizing…

A: Governments have to safeguard their markets in various aspects. It creates subsidies like taxing the…

Q: Please clearly label which part of the question (a, b, or c) you are answering. a. What is the…

A: The legal minimum or maximum prices set for specific items are referred to as "price controls." In a…

Q: QUESTION 4 When government imposes taxes on the buyers O then the demand curve will shift to the…

A: Since you have asked two questions simultaneously that's why I am giving you the answer of only one.…

Q: Which economic policies affect a government's budget and include the increase or decrease the money…

A: Economic policies are policies or course of action taken by the government in the field of…

Q: The government has decided that the free-market price of cheese is too low. a. Suppose the…

A: a. A price floor is a legal minimum on the price at which a good can be sold because the price…

Q: A deadweight loss results from the imposition of a tax on a good because the tax induces the…

A: A market achieves the state of equilibrium when the quantity demanded and quantity supplied are…

Q: Describe how the phasing out of subsidies to the oil industry can affect Peak Oil.

A: Oil industry is considered as the most important industry to make international trad and energy…

Q: Determinants of supply (Main Topic) - Continous  Government intervention Taxes Subsidies The state…

A: Supply is quantity of goods and service seller willing to sell at certain time and place and more…

Q: The shaded area in green on the graph below is called: Market р demand Market supply No tax p* q*…

A: Under welfare economics, scarce resources are allocated in such a way that improves the well-being…

Q: The government has decided that the free market price of cheese is too low.    Suppose the…

A: Price floor is the minimum price fixed for a commodity in the market. A price floor is kept above…

Q: Which of the following is a general sustain downward moment of prices for goods and service in an…

A: As per you mention two questions above the picture, we are solving these two questions only

Q: Draw a diagram where sellers have to pay a $X tax to the Government on each unit that they sell.…

A: When a tax is imposed on sellers in the market, the incidence of tax does not fall entirely on…

Q: When the government places a tax on the producer of a good or service both the supply and demand…

A: Option D is correct The supply curve for the good or service shifts to the left.

Q: The government has decided that the free-market price of cheese is too low. Suppose the government…

A: Hi, thank you for the question. As per the guidelines, we are allowed to attempt only first…