Question
Asked Jul 19, 2019
3 views

Let’s say that Marianne is a politician who promises cheaper gasoline for everyone in the country if she is elected. Once she is elected, she makes gas cheaper by imposing a price ceiling that is one full dollar less than the market’s equilibrium price. Would she expect to be reelected in the long run?

check_circle

Expert Answer

Step 1

From the aforementioned question, it can be stated that Marianne is one of the politicians who are competing for election and promises to reduce the gasoline price by $1 from the equilibrium price; hence,...

help_outline

Image Transcriptionclose

P 3 F 2- ' Q Quarity of gaudin Q" PRICE OF AAtOLINE

fullscreen

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Economics

Macroeconomic Policy

Related Economics Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: The following cost-output data were obtained as part of a study of the economies of scale in operati...

A: Answer1:The shape of the curve of an output (enrollment)-cost graph is given below: 

question_answer

Q: 1. Marty's Frozen Yogurt is a small shop that sells cups of frozen yogurt in a university town. Mart...

A: a.Fixed input:Fixed input refers the quantity do not change as quantity of output changes, which is ...

question_answer

Q: In the 1990s thousands of “dot-com” companies emerged with great fanfare to take advantage of the In...

A: Economics: Economics is all about making choices during the scarcity and allocation of these scarce ...

question_answer

Q: A company has been tracking the average inspection cost on a robotics line for 8 years. Cost average...

A: Here, it is given thatCost average for first four years = $200 per completed unitCost average increa...

question_answer

Q: Why does the us not outlaw all monopolies?

A: A monopoly is a market form where a single producer of a particular commodity or service controls th...

question_answer

Q: Consider the following production and cost functionsq=〖(10K^(2/5)+5L^(2/5))〗^(5/2)1250=20K+8LWhich i...

A: Production technologies or production function defines a relationship between the output and inputs....

question_answer

Q: the following probability distribution represents the number of people living in a household (x), an...

A: Given the value of X (households) = 1, 2, 3, 4, and 5.Probability of occurrence Px = 0.33, 0.29, 0.2...

question_answer

Q: Derive (Mathematically and graphically) the cost minimization condition.

A: Let’s assume the following in order to derive the cost minimization conditions.

question_answer

Q: please help

A: Production technologies or production function defines a relationship between the output and inputs....