Need help with the three questions. Short Response Questions:5. Govemments impose price controls in an effort to help either consumers or producers. Howeverexperience has shown us that there are always winners and losers when price controls areimposed.What is the effect of raising minimum wage?b. Who are the winners and losers n this scenanio and what do they win or lose?Overall does the government achieve its goal with this price control? Explain youra.C.answers.MICROECONCMICS

a) In labour surplus underdeveloped economies, labour supply often exceeds labour demand. In such…

Short Response Questions: 5. Govemments impose price controls in an effort to help either consumers or producers. However experience has shown us that there are always winners and losers when price controls are imposed. a What is the effect of raising minimum wage? b. Who are the winners and losers in this scenario and what do they win or lose? c. Overall does the government achieve its goal with this price control? Explain your answers.

Short Response Questions: 5. Govemments impose price controls in an effort to help either consumers or producers. However experience has shown us that there are always winners and losers when price controls are imposed. a What is the effect of raising minimum wage? b. Who are the winners and losers in this scenario and what do they win or lose? c. Overall does the government achieve its goal with this price control? Explain your answers.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter3: Demand And Supply

Section: Chapter Questions

Problem 46CTQ: Must government policy decisions have winners and losers? What are the effects of raising the...

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Must government policy decisions have winners and losers? What are the effects of raising the minimum wage? It is more complex than simply producers lose and workers gain. Who are the winners and who are the lasers, and what exactly do they win and lose? To what extent does the policy change achieve its goals?
Why is a living wage considered a price floor? Does imposing a living wage have the same outcome as a minimum wage?
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Let's say that the prevailing wage rate is $15. You(the Queen or King) are thinking of proposing a minimum wage of $20 or $10. a) Is the $20 proposal a price ceiling or floor? Is the $10 proposal a price ceiling or floor? b)Who is the buyer and seller? (demand curve, supply curve)? c)What would be the result of both policies. i.e.would this result in a surplus or shortage, and what would you call this?
Most government policy decisions have winners and losers. What are the effects of raisingthe minimum wage? It is more complex than simply producers lose and workers gain. Whoare the winners and who are the losers, and what exactly do they win and lose? To whatextent does the policy change achieve its goals?
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 points
We've seen how many economists vehemently oppose price controls, saying that they'll create either shortages (price ceilings) or gluts (price floors). How do studies of minimum wage (a price floor) challenge this orthodoxy?
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use diagramsa. What is the effect on the equilibrium price and quantity traded in market of theintroduction of a new technology that reduces costs of production for all firms?b. What is the effect on the equilibrium price and quantity traded in a market of a changein tastes that reduces the demand for the product?c. What is the effect on the equilibrium price and quantity traded in a market of theimposition of a tax per unit sold on suppliers?d. What is the effect on the equilibrium price and quantity traded in a market of thepayment of a subsidy per unit sold paid to suppliers?
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