Using the example of the gasoline market, explain how price acts as a rationing tool. Are there other ways to ration gasoline among consumers? Explain.
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Using the example of the gasoline market, explain how price acts as a rationing tool. Are...
Using the example of the gasoline market, explain how price acts as a rationing tool. Are there other ways to ration gasoline among consumers? Explain.
1) A complement to product X has decreased in price. Explain the change(s) in the market for product X. What is predicted to happen to equilibrium price and quantity of the product X? 2) Consider the market for automobiles (a normal good). Explain how the following changes effect the market for automobiles. There is an increase in income and the price of steel (an input for automobile production) increases. What is the predicted effect on the equilibrium price and quantity...
1. Suppose Gerte Guzzler has a daily income of $80. Gerte allocates her income between gasoline, which she uses on her daily commute to work, and clothing, which she wears to work. The price of gasoline is $5 per unit (1 unit = 5 gallons) and the price of clothing is $2 per unit. a. How is Gerte affected by a government plan to ration gasoline to 5 units per day? Explain. Use a graph of the consumer choice model...
The government intervenes in the free market in many different ways. For example, regulators may use price controls, impose taxes on consumers as well as on producers and give subsidies to producers. 1) What would be the intended outcome in the market by each of the above government actions? 2) Give a real-world example of how government intervention in the free market affects the demand for or supply of a product or service you use or a product or service...
Please provide an example of a case tool. Explain the case tool and how you would use it for an indicated software development process. Provide 2 references.
MAKE A PRESENTAITON OF 10 SLIDES Explain how externalities may lead to market failure. Using suitable example from any country, explain the ways in which the government has intervened to improve the market outcomes.
1) Using the graph above at 5 slices of pizza and $5.00 (point A), how will the market for pizza look like when there is a new technological machine to make pizzas at a faster rate? a. Explain the law of supply using quantity and priceb. Will the pizza market be in equilibrium or will it experience a market failure? Why or why not?2) Using the graph above at 5 slices of pizza and $5.00 (point A), how will the...
1. The language of price controls Suppose that, in a competitive market without government regulations, the equilibrium price of gasoline is $3.00 per gallon. Complete the following table by indicating whether each of the statements is an example of a price ceiling or a price floor and whether it is binding or nonbinding.2 Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value...
What is meant by a “binding price floor?” Give an example and explain how a binding price floor affects the market equilibrium.
Explain how Market Structures is an example of competitive analysis. (For example, Baye and Prince)