What are three reasons that a government might want to intervene in markets?

Q: This was all one question on my worksheet 1.The state of California has recently been experiencing…

A: Price ceiling is the limit of price to be charged for a product. This price is maximum price to be…

Q: Which of the following will always produce a "black market?" a. public goods b. negative…

A: Black market refers to the situation where the goods are sold at a rate higher than the price fixed…

Q: Refer to the above table. If the government implemented a price control at $20 which of the…

A: Equilibrium is achieved at the output level where Qs equals Qd.  Thus equilibrium price= $ 25,…

Q: An externality arises when a firm or person engages in an activity that affects the wellbeing of a…

A: * ANSWER :-

Q: What is efficiency? Is it the only goal of economic policymakers?

A: There are two branches of economics. Microeconomics - Microeconomics is the branch of economics…

Q: What are “Adam Smith’s laws of the market” What does Adam Smith think is behind the economy/market?…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Draw a graph of the mask market in Italy. 1. Begin by showing the market before the pandemic when…

A: When there was no pandemic, the demand and supply curves intersected each other, thus there was…

Q: The below graph shows the market of air tickets per month with no Government intervention What are…

A: Equilibrium is achieved at the output level where quantity demanded equals quantity supplied.

Q: how can price controls be used to avoid prices from increasing further

A: Price controls are the controls over the price that are made by the government. It is often seen…

Q: Are modern price controls such as ceiling and floors, similar? Why or why not?

A: Price ceiling is below equilibrium price level.

Q: Draw a diagram showing a market for milk with the equilibrium price of $5/gallon.  (ii) If diary…

A: Equilibrium in the market occurs at the intersection point of the demand and supply curve.  Price…

Q: When the prices of necessities such as gas and bottled water rise as a result of a natural disaster,…

A: Price need to be controlled by government. In aituations when pri e tises due to supply decreasing…

Q: Draw a graph for policies government use to correct market failures a) Price Mechanism b) Resolving…

A: Market failure : Market failure is an economic situation which stressed on the inefficient…

Q: Click on the icon to read the news clip, then answer the following questions. The graph shows the…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: How do price controls affect the market?

A: Price control is the technique used by the government to stabilize the demand and supply in the…

Q: If the government enacts legislation which allows lenders to lower lending standards, the government…

A: The demand for the commodity depends on the purchasing power of a consumer. If the purchasing power…

Q: What are the implications if the government started to control prices for products and how would…

A: The determining of market prices through the dynamic interaction of supply and demand is that the…

Q: why does a subsidy on a good lower the price consumers pay and raises the price producers recieve?

A: The subsidy refers to the provision of financial assistance to the business or the individual to…

Q: How can a free-market eliminate shortages

A: Market equilibrium reaches at the point where quantity demanded is equal to quantity supplied. This…

Q: Based on your opinion, and what was discussed in the textbook, do you think it makes sense for the…

A: Price ceilings refer to when the government places an upper limit on the price that can get charged…

Q: How does a tax on buyers affect the market equilibrium?

A: Suppose, there is a market in which the market equilibrium is attained at point E where the demand…

Q: The maximum legal price which is the suppliers can charge for a particular service or good is called…

A: According to the given question Maximum legal price is basically resisted by the government on…

Q: . Explain why economists usually oppose price control

A: Price control is one type of restriction on the price(P) of goods in the market. A particular…

Q: Can the market / price mechanism find some solutions?

A: The price mechanism is a means by which the allocation of scarce resources is determined by the…

Q: Analyze the role of the government when determining prices in markets

A: Governance is one of the main factors in deciding consumer prices. The government takes its stand…

Q: What are the advantages and disadvantages of the price system?

A: What are the advantages and disadvantages of the price system? Advantage: In a free market system,…

Q: What mechanisms allocate resources when the price of a good is not allowed to bring supply and…

A: Demand for a commodity is desire back by ability to pay and willingness to buy the commodity at a…

Q: Which of the following is a problem (from an efficiency perspective) with queuing an approach to…

A: The efficiency would result in the implicit definition of the ways and mechanism to use the…

Q: Which one of the two policies, a tax on pork meat consumption, or a tax on pork meat production, is…

A: Pork sector of animal husbandry is very unorganized sector. It mostly distributed under small…

Q: ome economists argue that government intervention is needed in addressing the issue of market…

A: In a free market where the prices of goods, the supply of goods and the demand for it are the basic…

Q: Click on the icon to read the news clip, then answer the following questions. The graph shows the…

A:

Q: The following graph shows the market for milk. The market price of milk without government…

A: At prices above the equilibrium price, the quantity supplied exceeds the quantity demanded and there…

Q: Using a graph showing the concepts of producer and consumer surplus, discuss the argument ‘it would…

A: The difference between the price a consumer is prepared to pay and the price a customer actually…

Q: Explain why economists usually oppose controls on prices.

A: A price is a monetary amount paid to a commodities seller in exchange for the item. In other words,…

Q: How does a tax on sellers affect the market equilibrium?

A: For sellers of a product, a tax is imposed. The direct effect of the tax in this situation is on the…

Q: How supplier affect the supply of goods to the public market?

A: At the marketplace, suppliers are the market participants who provided goods and services to…

Q: The Orlando Sentinel newspaper had an August 30, 2019 story titled “Hurricane Dorian: Florida…

A: Price Ceiling: The price ceiling is a market situation when the price charged is more than or less…

Q: What is the difference between price-fixing and predatory pricing? How do governments discourage…

A: Anti competitive prices are not favorable for general welfare of society. Such practices tend to…

Q: When there is a deadweight loss in the market, the marginal benefit must be larger than the marginal…

A: Marginal benefit is the advantage that an individual gets from devouring one more unit of a…

Q: Why does control of prices of some commodities by the government become inevitable? Need a full…

A: The governments across the world usually follow the policy of economic intervention by imposing…

Q: what does it mean for a market to be charcterized

A: A market is a particular place where two parties come together or meet to facilitate the exchange of…

Q: Click on the icon to read the news clip, then answer the following questions. The graph shows the…

A: Price control is a government-imposed economic strategy that establishes minimum price or price…

Market Equilibrium and Failure

The economy of a country or any place depends on the market demand and market supply of goods and services.