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

Q: The government imposes a 15% tax on the price of a good. How much does the consumer pay for a good…

A: Government and central bank are important for the economy. Some countries have certain resources in…

Q: In a supply-and-demand diagram, show producerand consumer surplus at the market equilibrium.

A: Consumer surplus refers to the difference between the price that the consumer willing to pay and the…

Q: Answer the following questions with the graph and match the key words with the correct box.   a)…

A: a) Before the government regulation, the price of crab is determined by the intersection of the…

Q: Explain why voluntary transactions improve social welfare.

A: Voluntary Transactions is the process through which buyers and sellers interact with each other in…

Q: What are welfare payment or consumer subsidies

A: Subsidies are basically the money which is paid by the government to an entity to raise that…

Q: Hello, I have a question after watching this video. Can you explain please?   In what ways can…

A: In the free market, the forces like demand and supply determines the equilibrium in the market and…

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

A: Price ceiling is below equilibrium price level.

Q: subsidy

A: ‘Subsidy’ is a payment usually made in cash directly or indirectly by the govt to a firm or the…

Q: What is a market failure

A: Definition of Market Failure In the free market, market failure is characterized as an inefficient…

Q: What is happening if governments sets a maximum price for electricity that is below the market…

A: If an upper price limit is set on a commodity and sellers are not allowed to sell a commodity above…

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: True or false: Granting subsidy on food will increase social welfare. Explain your answer with a…

A: The subsidy is the government provided a sum of money to the firms in the economy in order to reduce…

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: Suppose government impose a tax of 1 dollar per bottle on sellers of industrial detergent. Explain 3…

A: The tax is a compulsory payment or a levy which is imposed by the government on providing various…

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: Choose one of the following examples and explain whether you think that the government should ban…

A: Banning any product is not the ultimate solution to any of the issue because it will create a…

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: 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: 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: There are four hospitals (consumers in this example) willing to pay the following amounts for a…

A: Answer: Surplus: surplus refers to the difference between the cost of producing a good and the…

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

A: Government interference is government legislative action that aims to alter the decisions taken…

Q: Provide examples and/or latest news or updates of the law and supply and demand

A: The economies around the globe tend to operate with the help of the markets. The markets are for…

Q: Based on market research, a film production company in Ectenia obtains the following information…

A: A firm maximizes its profit at the output level where MC=MR

Q: How a Pigovian tax affects consumers? Please support your explanation based on a figure.

A: The Pigovian tax's aim is to reallocate the expense of the negative externality straight to the…

Q: Briefly mention what is the social discount rate?

A: A discount rate is the rate of return that is used to convert the nominal value of future cash flows…

Q: Why Malaysian governments often fail to implement market policy? Give an example.

A: Malaysian government do not initiate regulatory reforms on inclusive basis for the functioning of…

Q: Suppose a university has 5,000 parking spaces. Show by a supply and demand diagram which side of the…

A: The supply curve determines the quantity that the suppliers are willing to supply at a given price.…

Q: What is Market Distortion and its potential long-term effect? Please explain thank you.

A: A market is the set of suppliers and demanders whose trading establishes the price of a good. Firms…

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: 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: Suppose the government is considering an increase in the toll on a certain stretch of highway from…

A: Imposition of tax will increase marginal cost of highway use which results in decrease in number of…

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

A: In economics, the legal implementation of maximum and minimum prices for particular commodities by…

Q: How much is the decrease in consumer's surplus as a result of Quota?

A: Consumer surplus is calculated by CS = 1/2 ( base) (hight)