More than 20 states have laws outlawing price gouging during a state of emergency, which might be declared after ahurricane or an earthquake. These laws prohibit price increases on basic necessities, such as gasoline. Which of thearguments against price ceilings might not be significant during a state of emergency?It might be the case that during an emergency, consumers have little concern over the quality of a good that isavailable.It might be the case that during an emergency, consumers have little concern over the quantity of a good that isavailable.It might be the case that during an emergency, consumers have lttle concern over the price of a good that isavailableIt might be the case that during an emergency, consumers have little concern over the location of a good that isavailable.

During a state of emergency, it is usually important that goods, especially basic necessities, are…

Answered: More than 20 states have laws outlawing…

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter2: Economics: Eight Powerful Ideas

Section: Chapter Questions

Problem 12P

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The following table summarizes information about the market for principles of economics textbooks: What is the market equilibrium price and quantity of textbooks? To quell outrage over tuition increases, the college places a $55 limit on the price of textbooks. How many textbooks will be sold now? While the price limit is still in effect, automated publishing increases the efficiency of textbook production. Show graphically the likely effect of this innovation on the market price and quantity.
Suppose that in the citrus market, while the amount of production decreased due to cold winter conditions, consumers' desire to drink citrus juice increased in order to strengthen their immunity due to the COVID-19 epidemic. In this case, how is the equilibrium price and quantity affected in the citrus market? Evaluate this with the help of the figure for the case where the supply curve shifts more than the demand curve. (Note: Do not forget to write the names of the axes while drawing the figure. Show clearly the supply-demand curve and the market equilibrium point in the first case and the supply-demand curve and equilibrium point after the shift.)
If Charmin discovered a new, cheaper, production method for toilet paper would this, ceteris paribus, be reflected as a change in demand or a change in supply in the market for Charmin toilet paper - a normal good?  Explain. Be sure to clearly identify a textbook variable or determinant that is causing this change.  Would this change be an increase or decrease?  Explain.  Would this change result in a surplus or in a shortage in the market for Charmin toilet paper?  Explain.  Given this surplus or shortage, how will a new equilibrium be established?  What do you predict will happen to the equilibrium price and the equilibrium quantity exchanged in the market for Charmin toilet paper?  Explain.
Gasoline "prices at the pump" go up and down, and Oil "costs per barrel" go up or down, but they do so at different rates and even in opposite directions sometimes. We want to think that demand and supply control prices where the cost of crude oil is set by the same economic conditions that determine the gas price. What are these mismatched trends (graphs of each are shown in the following web links) telling us about how demand and supply work in the market? http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=EER_EPMRU_PF4_Y35NY_DPG&f=A http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=RWTC&f=A
How will the following event(s) affect demand and/or supply and equilibrium price (p*) and equilibrium quantity (q*) in a competitive market? Please describe whether the demand and/or supply curve shift right or left and the final impact on equilibrium price (P*) and equilibrium quantity (q*). You must say whether equilibrium price and quantity will go up, down, or if it cannot be determined (indeterminate or “?”). Market: paint. Event: a hailstorm forces some of the paint manufacturers to shut-down.
According to a researcher at the FDA, vegan foods are “the way if the future”. Morepersons have become health conscious and are looking for foods which will fit thislifestyle. One such food is the Beyond Burger, a plant-based alternative to beef. Notably,despite strong demand for beef burgers, the supply chain has seen a host of disruptionsthat are preventing producers from getting their products to market.Beyond Burger’s sales in Canada totaled $3.0 billion at the end of 2021, accounting for20% of all retail sales of burger patties (meat used in burgers), and 40% of the largermarket for vegan foods. By the end of 2025, sales of Beyond Burgers are projected to makeup 40% of all burger sales.i. Illustrate and explain the effect of the increased use of Beyond Burgers on (i) theburger patties market and (ii) the vegan market.
Demand for cookies is of the following form: P=20-4QD, where QD is millions of cookies demanded per year and P is price in US dollars. Supply of cookies of the following form: P=6+Qs, where QS is millions of cookies supplied per year and P is price in US dollars. a. What is the equilibrium quantity of cookies traded? Solve the equation, showing your work. b. Graph the supply and demand curves, marking their intersection. Be sure to label intercepts, equilibrium, etc. c. The government imposes a tax of $2 per cookie on producers of cookies. What is the new equilibrium quantity of cookies traded? Solve the equation, showing your work. d. In a graph, show how the supply curve has shifted. What price do consumers now pay? After paying the tax, how much to producers receive.
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.
Suppose that the demand for rental apartments in Washington, DC, is represented by the following equation, where P is the monthly rent. QD = 10,000 – 2PThe supply of rental apartments is represented by the following equation: QS = 2,000 + 3PThe equilibrium rent is a) $ , and the equilibrium quantity is b) $ . Part 2 (1 point) Suppose the city council passes an ordinance placing a price ceiling of $1,200 on apartment rentals. How much of a shortage will this lead to? apartments
Suppose the government of the island has decided to give consumers a more attractive price for tomatoes by imposing a fixed, per unit subsidy. Thus, start with the original demand (Qd = 450 - 100P) and supply (Qs = 50P) and analyze this new intervention, the subsidy. The subsidy works like this: each tomato seller receives a 3-dollar refund for each kilogram of tomatoes sold. Write down the equation for the new "effective supply" curve. Determine the new equilibrium quantity and equilibrium price. What is the price that the consumers will pay for their tomatoes? What is the price that the producers will effectively earn for their tomatoes, inclusive of the subsidy? How much will the government spend on tomato subsidies in this case in total? (Recall the units of measurement: P is the price in dollars per kilogram of tomatoes; and Q is the quantity of tomatoes, expressed in thousands of kilograms.) Graphically depict the new equilibrium complete with (solved) values for the new…
When the Covid-19 pandemic hits, chicken sellers are likely to raise chicken prices due to rising costs. The government had to act by setting a ceiling price for the supply of chicken in the market. The original price of chicken is RM6 per kilo. At that time, it is assumed that the equilibrium quantity is 1000 chickens. But the government has set the ceiling price at RM8 only. Draw and briefly explain a curve that illustrates the situation where ceiling pricing takes place in the sale of chicken in the market.
It is often argued that during periods of rapid demand expansion, when prices arerising, poor people should be protected from rising prices by imposing price controls on“necessities.” Analyze the short-run and long-run effect of imposing a maximum price belowthe equilibrium in a competitive market that is experiencing rising demand.a. Do price controls really protect poor people better than the operation of competitive markets does in the long run? Explain.b. Provide a numerical example.c. Provide a graph.

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