The government often meddles in markets, using price ceilings and price floors and taxes which move the market away from free market equilibrium. Should the government meddle in markets? When should it meddle? Should there be rent controls or other price ceilings? Should the government set a minimum wage be $15? Should the government control the price of life saving medicine, such as insulin? Should they set a price ceiling? Or use taxes? How does elasticity of demand affect who will pay the tax? What are some reasons that the government should meddle in markets using price controls and taxes

The government often meddles in markets, using price ceilings and price floors and taxes which move the market away from free market equilibrium. Should the government meddle in markets? When should it meddle? Should there be rent controls or other price ceilings? Should the government set a minimum wage be $15? Should the government control the price of life saving medicine, such as insulin? Should they set a price ceiling? Or use taxes? How does elasticity of demand affect who will pay the tax? What are some reasons that the government should meddle in markets using price controls and taxes

EBK HEALTH ECONOMICS AND POLICY

7th Edition

ISBN:9781337668279

Author:Henderson

Publisher:Henderson

Chapter13: Medicaid

Section: Chapter Questions

Problem 5QAP

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Hello, please help me with the following questions What is the amount of shortage or surplus in the corn market as result of the price floor? If the government agrees to purchase any surplus output at $12, how much will it cost the government? If the government buys all of the farmers' output at the floor price, how many bushels of corn will it have to purchase and how much will it cost the government?
What happens to the prices of items like generators, fuel, plywood and ice during natural disasters? Explain. Should government impose price controls? If the controls keep the prices from rising, how will this affect the flow of these items into the disaster area? (SUPPLY AND DEMAND)
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. Explain why economists usually oppose price control
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