Q: Which policy increases the consumption of a good? a price floor/a price ceiling / a subsidy/ a tax
A: Consumption of goods and services is to satisfy the unlimited wants of the consumers. An increase in…
Q: Let’s say that Marianne is a politician who promises cheaper gasoline for everyone in the country if…
A: From the aforementioned question, it can be stated that Marianne is one of the politicians who are…
Q: A price ceiling is intended to benefit which group of people? consumers producers The…
A: Answer to the question is as follows:
Q: I'm stuck on this question. I feel like a new equilibrium will be created but on the other hand, I…
A: A market is a place where the buyers and sellers interact with each other and the exchange of goods…
Q: Why is a living wage considered a price floor?Does imposing a living wage have the same out come as…
A: The living wage is the price which an individual require to survive the economic needs in the…
Q: S. D P2 C E Po H G B P A K Qo Q2 Quantity What area represents the deadweight loss that would result…
A: Note:- Since the area that represents deadweight loss, consumer surplus and producer surplus can…
Q: Complete the following table by indicating whether each of the statements is an example of a price…
A: A competitive market is one where there are numerous producers that compete with one another in…
Q: In 1994, 565 economists sent President Bill Clinton a letter warning against the economic…
A: The price controls such as the price ceilings are considered to be good for the welfare of the…
Q: ernment of Brazil wishes to regulate the grocery bags by preventing the current prices from rising,…
A: Market refers to a place where good & services are bought & sold. Here the main medium of…
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: Homework (Ch 06) Back to Assignment Attempts Average / 1 1. The language of price controls Suppose…
A: Price ceiling is the legal maximum price that can be charged for a good or service.
Q: If a government price control was set a price of $2. Which kind of price control would it be? price…
A: A price ceiling is happening when the cost charged is more or less than the equilibrium price…
Q: pros and cons of imposing a price ceiling in the United States on mask.
A: Price ceiling is when the government fixes the maximum price for which a commodity or service may be…
Q: True or False: A price ceiling above $25 per box is a binding price ceiling in this market.
A: A price ceiling is binding if it's imposed below equilibrium price. In this market, equilibrium…
Q: A price ceiling is not binding if what? A. people does not agree to abide by it B. the…
A: Equilibrium is achieved in the market where quantity supplied equals quantity demand at that price.
Q: Some consumers lobby the government to convince law makers to impose price ceilings, what are the…
A: In a market, price ceiling is one of the price control strategies of the government under which…
Q: Consider rent control (a price ceiling). Who does rent control intend to benefit? Discuss some of…
A: Equilibrium is achieved at the output level where number of property demanded equals number of…
Q: Which of the following would be the least likety result of a binding price ceiling imposed on the…
A: The price ceiling being set below the price being at equilibrium would tend to create fo shortage in…
Q: Refer to the figure below (assume the intercept is at (0,0) and (0,20)), suppose the government…
A: Price ceiling would always be below the equilibrium price. Here, the equilibrium price is $10.…
Q: Despite the disadvantages of price ceilings and price floors why may governments still choose to…
A: To shield buyers from circumstances that may make goods exorbitantly costly, policymakers use price…
Q: In a market with a binding price floor, a decrease in the floor price will ________________ the…
A: A price floor is imposed by government to protect the producers from getting less for their goods.
Q: Calculate the effect of a price ceiling on the equilibrium priceand quantity.
A: Price ceiling: It refers to the market situation in which the charged price is increased or…
Q: Use the following table to answer the question(s) below: Market for Frisbees Price of Quantity…
A: Price control refers to restrictions set by the government on the market price of a commodity. There…
Q: Which of the following is true with the imposition of the price control or price ceiling? A. the…
A: When price control in form of price ceiling is imposed, the price is lower than the equilibrium…
Q: Is the minimum wage an example of a price floor or a price ceiling? What are the supply and demand…
A: A price floor is the minimum price decided by the government to be paid whereas a price ceiling is…
Q: Please clearly label which part of the question (a, b, or c) you are answering. a. What is the…
A: The legal minimum or maximum prices set for specific items are referred to as "price controls." In a…
Q: for Florida oranges, which are sold in units of 90-pound boxes. (a). True or False: A price…
A: Equilibrium is achieved at the output level where quantity supplied equals quantity demanded. Thus,…
Q: Given the following information: QD = 240 – 5P QS = P Where QD is the quantity demanded, Qs is…
A: Demand(D) is a downward-sloping curve which shows that price(P) and quantity demanded(QD) are…
Q: If the federal minimum wage is raised to $20 per hour, how might that effect the labor market in the…
A: If the faderal Minimum wages are increased to $ 20 there will be the significant changes in the…
Q: What is the difference between a price floor and price ceiling? According to the laws of demand and…
A: Ceiling means maximum limit. Price ceiling means the maximum price of a commodity that the sellers…
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: If a government price control was set at a price of $4. Which type of price control would it be?…
A: Price control are of two types, i.e., price ceiling and price floor. Price ceiling is used to…
Q: Consider the graph. What is the deadweight loss associated with the price floor?
A: Price floor is the price set by government above equilibrium to help producers. Deadweight loss is…
Q: Suppose that, in a competitive market without government regulations, the equilibrium price of…
A: Given that the equilibrium price is $7 and we have to state that whether it's price ceiling or price…
Q: Explain some problems the government must solve, as a result of the effects of a price ceiling.…
A: Prices are a sensitive thing especially when they are of necessities. In some cases, discontent over…
Q: Question 10 is a real-life example of a price floor. a) Any market equilibrium price b) A black…
A: Price control refers the minimum or maximum prices set legally by the government for specific goods…
Q: The most prominent example of a price floor in industrialized market economies is a minimum (or…
A: Minimum wage means that an employer cannot give a wage(w) lesser than a fixed wage(w*). Price floor…
Q: Which of the following is NOT one of the consequences of a binding Price Ceiling? Select one: a. an…
A: Equilibrium is achieved at the output level where Qs equals Qd.
Q: What is the term for costs to society due to inefficiencies in the market? A. price ceiling B.…
A: An economy reaches efficient equilibrium where demand is equal to supply.
Q: The equilibrium price in the housing market is very high. What do you think will happen if the…
A: Price relining is an upper limit price imposed by the government. Nobody is allowed the charge price…
Q: Why might producers argue for a price floor if it ends up making society worse off
A: Price floor is the least legal price of a good or service. Example of price floor minimum wage rate
Q: An example of an effective price ceiling would be government setting the price of pencils at…
A: Price ceiling is the upper limit on the price of good and services in imposed by the government for…
Q: Draw a diagram showing the market for generators with an equilibrium price at $250. Now impose a…
A: The graph below shows the price ceiling and the equilibrium market price. The price ceiling is…
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- In an effort to reduce alcohol consumption, the government is considering a tax$1 for every gallon of liquor sold (tax imposed on manufacturers). Supposethe demand curve is Q D = 500,000 - 20,000 P (where Q D is the number of gallons of drinkliquor demanded and P is the price per gallon), and the liquor supply curve isQ S = 30,000 P (where Q S is the number of gallons supplied).a. Calculate how the tax affects the price paid by consumers and the price paidaccepted by the manufacturer.b. What is the tax revenue for the government? How much incomecome from consumers, and how much from producers?c. Suppose the demand for liquor is more elastic for younger drinkers thanolder drinker. Will the liquor tax be more, less, or the sameeffective in reducing alcohol consumption among young drinkers?Explain.Lovers of classical music persuade Congress to imposea price ceiling of $40 per concert t1cke1. As a result ofthis policy, do more or fewer people a llcnd classicalmusic concerts? Explain.Let’s say that Marianne is a politician who promises cheaper gasoline for everyone in the country if she is elected. Once she is elected, she makes gas cheaper by imposing a price ceiling that is one full dollar less than the market’s equilibrium price. What would be the reaction of the sellers of gasoline and of the public to Marianne’s price ceiling law?
- Consider the market for ice cream cones. Suppose that supply in this market is given by P^S = Q^S and demand is given by P^D = 30 - 4Q^D. Answer the following question. Suppose that the government is considering imposing a $4.00 price control as either a price ceiling or a price floor. Would this be a binding price control as a price floor or as a price ceiling? Will this cause a shortage or a surplus? Compute the size of the shortage or surplus that would result.The demand and supply functions for stylus pens are given by P = 100 - Q and P = 20 + 5Q, respectively.Now the government imposed a $10 per unit tax on stylus pens collected from sellers. What are themarket equilibrium price and quantity of stylus pens before imposing the tax? What are the marketequilibrium price and quantity of stylus pens after imposing the tax? What is the tax burden imposed onbuyers and sellers, respectively?Consider the market for ice cream cones. Suppose that supply in this market is given by PS =QS and demand is given by PD=30−4×QD. Answer the following questions. a.) Suppose that the government is considering imposing a $4.00 price control as either a price ceiling or a price floor. Would this be a binding price control as a price floor or as a price ceiling? Will this cause a shortage or a surplus? Compute the size of the shortage or surplus that would result. b.) Suppose that instead of a price control, the government is considering imposing a $1.00 per ice cream cone tax in the market on producers. Compute the tax equilibrium quantity QTe, the consumer effective price with the tax PD, the producer effective price with the tax PD, consumer tax incidence and producer tax incidence. c.) Notice that the competitive equilibrium (Qe,Pe) and the point (QTe,PD) are both on the demand curve. Use them to compute the price elasticity of demand. d.) Notice that the competitive equilibrium…
- 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?Despite the disadvantages of price ceilings and price floors why may governments still choose to implement these two forms of pricing strategies?Asap In the case of a binding price ceiling, the price paid in the market will be: more than the free market equilibrium price. less than the free market equilibrium price. equal to the free market equilibrium price. unable to be compared with the free market equilibrium price.
- During a discussion several year; ago on building a pipeline to Alaska to carry natural gas, the U.S. Senate passed a bill stipulating mat there should be a guaranteed minimum price for the natural gas that would flow through line pipeline. The thinking behind the bill was that if private firms had a guaranteed price for their natural gas, they would be more willing to drill for gas and to pay to build the pipeline. Using the demand and supply framework, predict the effects of this price floor on fine price, quantity demanded, and quantity supplied. With the enactment of this price floor for natural gas, what are some of the likely unintended consequences in line market? Suggest some policies other than the price floor that he government can pursue if it wishes to encourage drilling for natural gas and fur a new pipeline in Alaska.Imagine that to preserve the traditional way of life in small fishing villages, at government decides to impose a price floor that will guarantee all fishermen a certain price for their catch. Using the demand and supply framework, predict the effects on the price, quantity demanded, and quantity supplied. With the enactment of this price floor for fish, what are some of the likely unintended consequences in file market? Suggest some policies other than the price floor to make it possible for small fishing villages to continue.For the following aseve, indicate whether it is true, false or uncertain and furthermore please argue each of the alternatives."A price ceiling that is set below the equilibrium price":(a) reduces good-seeking activity and the use of black marketsb) increases the search activity for the good and the use of black marketsc) reduces the search activity for the good and increases the use of black marketsd) increases good-seeking activity and reduces the use of black markets