Price controls often generate Select one: а. market clearing prices. b. equilibriums that utilize rationing by price. С. black markets. d. rapid supply increases to meet the excess demand.
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- Question 2 The demand and supply of widgets is given belowQ is quantity, and P is price of widgets Q-1000-2P Q-500+3P aHow much is equilibrium quantity and equilibrium price (show me your work) bIf there is a price control of $50 imposed by the government for widgets, how much shortage is there in the economyWhat type of price control is this called? c. Draw the Demand and Supply graphsshow equilibrium pricequantity points and on the same graph show price control pointsIndian government realized free market price of wheat is very low. To increase farmers’ welfare government took the following steps: a) Suppose the government imposes a binding price floor in the wheat market. How this policy will affect the price, quantity demanded and quantity supplied of wheat. b) Wheat farmers complained that this binding price floor reduced their revenue. Explain how it reduced their revenue. c) In response to wheat farmers’ complaints, government purchases all the surplus quantity at the minimum price decided by the government. Who are the beneficiaries and who loses due to this price floor?Current 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
- Which government policy measure would reduce the price of a product and increase the quantity traded in the market? Pick a,b,c or d a. The setting of a maximum price b. The setting of a minimum price c. The imposition of a tax d. The granting of subsidyAssume the sale of human organs is legalized and a free market develops. Furthermore,assume the market is in equilibrium. Trace through the price and output effects of the following: 3a. An increase in the incomes of potential buyers of human kidneys. 3b. A decrease in the price of kidney dialysis. 3c. The development of a new drug that leaves the immune system intact while preventing transplant rejection. 3d. A greater willingness by individuals to supply human kidneys.What 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 event
- 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 THREE points showing effectiveness of this policy on the market.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 markeQ)Government-imposed quantity restrictions a.generate higher prices for the good than would prevail under freely competitive markets. b.don't affect the price of the good. c.generate lower prices for the good than would prevail under freely competitive markets. d.can cause prices to either be higher or lower, but always cause excess supply to develop Not copy paste sokution anywhere
- A market is described by the following supply and demand curves: QS=2P andQD =300-2Pa. Solve for the equilibrium price(in $) and quantity.b. Two policies have been suggested to the government i) a price floor of $90 or anii)price ceiling of $90. Which policy government can take and why?c. For the adopted policy in b) what will be the price, quantity demand, quantitysupply, shortage, and surplus?Consumers’ and Producers’ Surplus Find the consumers’ surplus at a price level of = $15 for the price demand equation p = D(x) = (7500 - 30x)/(300-x). Graph the price demand equation and the price level equation p = $15. What region represents the consumers’ surplus? Please explain each step in the solving process to help understand. Thank you. 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.What is the term for costs to society due to inefficiencies in the market? A. price ceiling B. equilibrium price C. deadweight loss D. price floor