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. Would she expect to be reelected in the long run?

Q: if the price ceiling of a good is set AT the Equalibrium Price, is it non binding?

A: Price ceiling is set by government above or below the equilibrium price when it wants to regulate…

Q: Complete the following table by indicating whether each of the statements is an example of a price…

A: Price floor is a minimum price at which a seller can sell a commodity. The government uses a price…

Q: Would increasing the amount of the federal minimum wage hurt the US economy? What have economists…

A: in general , economy operates at market mechanism but sometimes market fail and neglect the most…

Q: Discuss the effect on the markets for each of the three products if the government implements a…

A: The average sales value increased by the amount of units oversubscribed equals revenue, that is…

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: In the labor market, workers would like to receive higher wages and firms would like to pay lower…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

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: Why do taxes create a deadweight loss the same way that regulations do? If a tax and a quota raise…

A: The loss of something which is considered to be good economically that tends to occurs due to the…

Q: Suppose the government sets a Price Ceiling at $5. If the market equilibrium price is $3, the Price…

A: Price Ceiling is the maximum price set by the government which can be charged for a good or service.…

Q: Please answer these two questions using the information from above: The government wants to increase…

A:

Q: Consider a minimum wage law -- a law where the government requires businesses pay at least a certain…

A: The equilibrium wage rate and the equilibrium quantity of labor achieve where the demand curve for…

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: What potential costs and benefits might a government have to consider in deciding whether to impose…

A: Price ceiling is the government imposed price control. It is a limit on how high a price can be…

Q: Which of the following statements are true?     a) Economists call the farm price support system…

A: Lump of Labor Fallacy: This was the mistaken belief that in an economy there is a fixed number of…

Q: 1.Given the following information Q_d = 240 – 5p Q_s = P Where Q_d is the quantity demanded, Q_s…

A: Since you have posted a question with multiple subparts, we will solve the first three subparts for…

Q: If the government were to set a price floor for fresh jumbo shrimps above the market equilibrium,…

A: If there is price floor,supply exceeds demand. Therefore there would be surplus.

Q: What happens if a government imposes price controls that require a selling price that is  ABOVE the…

A: If a government imposes price controls that require a selling price that is above the equilibrium…

Q: There has been a great deal of movement of physicians across borders within the European Union, and…

A: Price ceiling is the price control imposed by the government. It is the limit on the maximum price…

Q: Frice $45 $20- $16. $14 $10 45 50 55 70 85 Quantity (millions of crates)

A: Price floor refers to the legal minimum that can be charged for a good. It is set above the…

Q: Does a binding price floor always leads to an increase in producer surplus?

A: A price floor is a government intervention in a free market where the price is set at a level that…

Q: Does the price control mechanism (price floor and price sealing) to a resource shortage provide an…

A: Yes, the price mechanism gives a positive and negative feedback loop.

Q: Suppose a government imposes a price ceiling and price floor in the same market. If the price…

A: "Price ceiling is the maximum price that a seller can charge for a good or service." Price ceilings…

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

A: Price floor: it is the minimum legal price set for a commodity or service by the government or an…

Q: if the government imposed a price ceiling on oil and gas prices? How would this affect the market in…

A: The oil sector is largely affected by the law of supply and demand.  Oil price expectations are one…

Q: What is the amount of shortage or surplus in the corn market as result of the price floor? If the…

A: A price floor exists when the price charged is greater than or less than the equilibrium price set…

Q: How does a price ceiling below equilibrium affect the market?  How does a price ceiling above…

A: A price ceiling is the set limit on how much a seller can charge for a product or service. Price…

Q: Why do most economists oppose price ceilings and price floor? What are their negative consequences?

A: The government determines the maximum price for a good or service. Price ceilings keep prices from…

Q: In this problem we have considered two government schemes: A price floor is established and the…

A: In the given table, equilibrium price is achieved when quantity demanded is equal to quantity…

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: 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: . 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: How can a price ceiling make consumers better off? Under what conditions might it make them worse…

A: Price controls are those government restrictions that are enforced to regulate the prices of goods…

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: Illustrate on a supply and demand diagram how price ceilings may distort the market outcome, and…

A: Price control is defined as the measures adopted by the government to maintain the welfare of both…

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: Discuss how the equilibrium price and quantity change when a change in demand occurs and the supply…

A:

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: 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: Environmentalists and the president decide that Canada should reduce air pollution by reducing its…

A: Answer:  Step 1: Suppose in the market of gasoline without tax, the price of gasoline is P and the…

Q: What can cause a price ceiling to become nonbinding?

A: Price controls are those government restrictions that are enforced to regulate the prices of goods…

Q: why price control did not work for sugar? Does it work for other commodities? Why or why not?

A: When the government intervenes in an otherwise free market to put some kind of restrictions on the…

Q: Does a price ceiling increase or decrease the number of transactions in a market? Why? What about a…

A: A price ceiling refers to a maximum limit set on the price of a good that can be charged by a…

Q: Concerned about the political fallout from rising gas prices, suppose that the U.S. government…

A: 1. The market equilibrium price is determined at the intersection of the demand and supply curves in…

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: Hello, please help me with the following questions  What is the amount of shortage or surplus in…

A:

Q: Which group is a price floor intended to benefit? consumers   producers   The Government

A: Price floor is a minimum price at which a seller can sell a commodity.