Principles of Economics (MindTap Course List)
8th Edition
ISBN: 9781305585126
Author: N. Gregory Mankiw
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 6, Problem 4QR
To determine
The reason why economists oppose price controls.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Explain why economists usually oppose controls on prices.
. Explain why economists usually oppose price control
Why do most economists oppose price ceilings and price floor? What are their negative consequences?
Chapter 6 Solutions
Principles of Economics (MindTap Course List)
Ch. 6.1 - Prob. 1QQCh. 6.2 - Prob. 2QQCh. 6 - Prob. 1CQQCh. 6 - Prob. 2CQQCh. 6 - Prob. 3CQQCh. 6 - Prob. 4CQQCh. 6 - Prob. 5CQQCh. 6 - Prob. 6CQQCh. 6 - Prob. 1QRCh. 6 - Prob. 2QR
Ch. 6 - Prob. 3QRCh. 6 - Prob. 4QRCh. 6 - Prob. 5QRCh. 6 - Prob. 6QRCh. 6 - Prob. 7QRCh. 6 - Prob. 1PACh. 6 - Prob. 2PACh. 6 - Prob. 3PACh. 6 - Prob. 4PACh. 6 - Prob. 5PACh. 6 - Prob. 6PACh. 6 - Prob. 7PACh. 6 - A case study in this chapter discusses the federal...Ch. 6 - Prob. 9PACh. 6 - Prob. 10PA
Knowledge Booster
Similar questions
- What happens if a government imposes price controls that require a selling price that is ABOVE the equilibrium price? A. SHORTAGE. That shortage then puts a pressure on prices to DROP toward equilibrium. B. SHORTAGE. That shortage then puts a pressure on prices to RISE toward equilibrium. C. SURPLUS. That surplus then puts a pressure on prices to DROP toward equilibrium. D. SURPLUS. That surplus then puts a pressure on prices to RISE toward equilibrium. What happens if a government imposes price controls that require a selling price that is BELOW the equilibrium price? A. SHORTAGE. That shortage then puts a pressure on prices to DROP toward equilibrium. B. SHORTAGE. That shortage then puts a pressure on prices to RISE toward equilibrium. C. SURPLUS. That surplus then puts a pressure on prices to DROP toward equilibrium. D. SURPLUS. That surplus then puts a pressure on prices to RISE toward equilibrium.arrow_forwardIf a government price control was set a price of $2. Which kind of price control would it be? price ceiling price floor no price control can exist below the equilibriumarrow_forwardWith a binding price ceiling, buyers will be better off and producers will be worse off. True or False?arrow_forward
- Which policy increases the consumption of a good? a price floor/a price ceiling / a subsidy/ a taxarrow_forwardIf a government price control was set at a price of $4. Which type of price control would it be? price ceiling price floor No price control could exist above the equilibriumarrow_forwardIn 1994, 565 economists sent President Bill Clinton a letter warning against the economic consequences of price controls that played such a prominent role in his healthcare reform plan. The price controls included mandated fee schedules for a fee for service medical plans, perspective budgets for regional health alliances, increases in health insurance premiums tied to the cost of living, and price ceilings on prescription drugs. Discuss the economics of price controls. Under what circumstances do they accomplish their intended purpose? When do they fail?arrow_forward
- When policymakers set controls on prices, they obscure the signals that guide the allocation of society’s resources. Further, price controls often hurt those they are trying to help. Select one: a.False b.Truearrow_forwardWhat 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)arrow_forwardWhich of the following is a general sustain downward moment of prices for goods and service in an economy? Which of the following is a common criticism of government price controls?arrow_forward
- If the government want to implement the price control mechanism, explain the machanism when the price set at RM3 and RM5 respectivelyarrow_forwardWhich two policies that we discussed can create an excess burden? Price floors and price ceilings Price supports and subsidies Price floors and quotas on sellers Taxes and subsidiesarrow_forwardDoes a binding price floor always leads to an increase in producer surplus?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Microeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506893Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Macroeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506756Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Macroeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning