Help please Concerned about the political fallout from rising gas prices, the U.S. government decides to impose a price ceiling on gasoline of $4.00 a gallon.of gasoline would emerge.If the oil-producing nations increased production and drove the equilibrium price to $3.00 a gallon,The U.S. market for gasoline would beA. a shortage and a black market would emerge; inefficientOB. a surplus; efficientOC. a surplus and a black market would emerge; inefficientOD. neither a surplus nor a shortage; efficientOE. a shortage and a black market would emerge; efficientNextIT

The measure that depicts the maximum amount that could in turn be charged by a seller for providing…

Concerned about the political fallout from rising gas prices, the U.S. government decides to impose a price ceiling on gasoline of $4.00 a gallon. If the oil-producing nations increased production and drove the equilibrium price to $3.00 a gallon, of gasoline would emerge. The U.S. market for gasoline would be A. a shortage and a black market would emerge; inefficient OB. a surplus; efficient OC. a surplus and a black market would emerge; inefficient O D. neither a surplus nor a shortage; efficient OE. a shortage and a black market would emerge; efficient ...

Concerned about the political fallout from rising gas prices, the U.S. government decides to impose a price ceiling on gasoline of $4.00 a gallon. If the oil-producing nations increased production and drove the equilibrium price to $3.00 a gallon, of gasoline would emerge. The U.S. market for gasoline would be A. a shortage and a black market would emerge; inefficient OB. a surplus; efficient OC. a surplus and a black market would emerge; inefficient O D. neither a surplus nor a shortage; efficient OE. a shortage and a black market would emerge; efficient ...

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter4: Markets In Action

Section: Chapter Questions

Problem 1SQ

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Similar questions

Consider the Figure below for the market of gasoline, given the equilibrium after a change in supply from S1 to S2 Price (per gallon) $5 4 3 2 1 0 S₁ D 200 300 400 500 600 Quantity of gasoline (per month) A. the equilibrium price will decrease due to excess supply at the old equilibrium price level. B. the equilibrium price will increase due to excess demand at the old equilibrium price level. 100 S₂ C. consumer surplus will decrease due to decrease in the market price. D. the equilibrium quantity will decrease due to excess demand at the old equilibrium price level.
. Which statement best explains how a price ceiling affects the market for gasoline? It can cause more gasoline producers to enter the market. It can lead to producers increasing their production costs for gasoline. It can cause shortages in the supply of gasoline. It can lead to a decrease in the demand from consumers for gasoline.
2. Consider a market for portable water pump with demand equal to p = 2340-4.5Q and supply equal to p = 10 + 6.7Q. This pump is an essential equipment for farmers to provide water to their vegetable farms, and many farmer could not afford buy the pumps. The government decides to offer a subsidy to purchase the pumps to help the farmers. The subsidy is $150 and is paid to the sellers. A. Find the market equilibrium price and quantity. B. Determine the subsidized price to the farmers and the price received by the sellers. C. Find the total subsidy expenditure and the excess burden of the subsidy. D. Do you think this subsidy achieve the objective? Suggest a method to improve the provision of the subsidy.
Which of the following will definitely occur when there is an increase in demand for and a decitase in supply of milk? An increase in equilibrium price A decrease in equilibrium price c. An increase in equilibrium quantity d. A decrease in equilibrium quantity
2. Consider a market for portable water pump with demand equal to p = 2340 - 4.5Q and supply equal to p = 10+ 6.7Q. This pump is an essential equipment for farmers to provide water to their vegetable farms, and many farmer could not afford buy the pumps. The government decides to offer a subsidy to purchase the pumps to help the farmers. The subsidy is $150 and is paid to the sellers. A. Find the market equilibrium price and quantity. B. Determine the subsidized price to the farmers and the price received by the sellers. C. Do you think this subsidy achieve the objective? Suggest a method to improve the provision of the subsidy.
An agreement is reached by OPEC to reduce the supply of oil on world market for oil. Usedemand and supply curves to illustrate and explain the impact this will have on the marketfor oil. How will it affect the equilibrium price and quantity of oil
a) In the market for sugary drinks, the current equilibrium price is $10 and the equilibrium quantity is 30. The demand choke price is $50 and the supply choke price is $5 (a) Draw a demand and supply diagram, and shade the regions that represent consumer and producer welfare. Calculate the Total welfare in this market b) In this market, you now know that E D = −0.4 and E S = 1.2. Redraw your diagram in part (a) with the correct sloping curves. In this part you do not have to shade the welfare regions. All you need to do is redraw the diagram with the same equilibrium price and quantity, and choke prices but adjust the slope of each curve to reflect their respective elasticity c) If a tax was to be implemented in this market, what percentage of the burden is borne by the buyer? d) The government plans to discourage the consumption of sugary drinks and as such, they implemented a $1 tax on every bottle produced. In this situation, the suppliers are taxed directly but they hope to pass…
close substitute for ocean-fished cod. The graph below shows the market for farm-raised halibut. Initially, the market is in equilibrium at a price of $8 and a quantity of 6 thousand pounds. a. Overfishing in the cod market will influence the market for farm-raised halibut by: decreasing supply to S2 and raising the market price. increasing demand to D2 and increasing the market price. O increasing supply to $3 and lowering the market price. O decreasing demand to D3 and decreasing the market price. b. A fast-food chain purchases cod for use in its Fish 'n' Chips meals. Already hurt by the reduced supply of cod, the fast-food chain has lobbied aggressively for price controls on farmed halibut. As a result, Congress has considered imposing a price ceiling on halibut at the former equilibrium price-the price that prevailed before overfishing reduced the supply of cod ($8 per pound). Suppose Congress adopts the price control policy, which sets the price at $8 per pound. On the graph…
The government in your country is considering three programs that affect the market for cigarettes. Program 1: Media campaign and labeling requirements aimed at making the public aware of the dangers of cigarette smoking. Program 2: A price support program for tobacco farmers. Program 3: A cap on the number of cases of cigarettes sold per quarter at 20,000 cases. I. Determine the impact of an the market for cigarettes if program 1 is implemented by stating what will happen to supply, price, quantity and demanded. ii. Determine the impact of on the market for cigarettes if program 2 is implemented by stating what Will happen to demand,supply, price and quantity. iii. Determine the impact of an the market for cigarettes if program 3 is Implemented by stating what will happen to demand,supply,price and quantity.
One of the largest changes in the economy over the past several decades is that technological advances have reduced the cost of making computers.a. Draw a supply-and-demand diagram to show what happened to price, quantity, consumer surplus, and producer surplus in the market for computers.b. Forty years ago, students used typewriters to prepare papers for their classes; today they use computers. Does that make computers and typewriters complements or substitutes? Use a supply-and-demand diagram to show what happened to price, quantity, consumer surplus, and producer surplus in the market for type- writers. Should typewriter producers have been happy or sad about the technological advance in computers?c. Are computers and software complements or substitutes? Draw a supply-and-demand diagram to show what happened to price, quantity, consumer surplus, and producer surplus in the market for software. Should software producers have been happy or sad about the technological advance in…
1. One of the largest changes in the economy over the past several decades is that technological advances have reduced the cost of making computers. a. Draw a supply-and-demand diagram to show what happened to price, quantity, consumer surplus, and producer surplus in the market for computers. b. Forty years ago, students used typewriters to prepare papers for their classes; today they use computers. Does that make computers and typewriters complements or substitutes? Use a supply-and-demand diagram to show what happened to price, quantity, consumer surplus, and producer surplus in the market for typewriters. Should typewriter producers have been happy or sad about the technological advance in computers? c. Are computers and software complements or substitutes? Draw a supply-and-demand diagram to show what happened to price, quantity, consumer surplus, and producer surplus in the market for software. Should software producers have been happy or sad about the technological advance in…
If a municipality sets a price ceiling below equilibrium for apartments in New York City, Select one: a. the price ceiling will create a surplus of apartments b. the price ceiling will create a shortage of apartments c. the price ceiling will not affect the market for apartments d. the market for more broadway plays will increase Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.