Consider that the retail market for sanitizing wipes in a small locale is described by the follow demand and supply equations respectively: P = 8,40 – 0.02Q and P = 6.60 + 0.01Q where P is the price in dollars and Q is the quantity measured in thousands per week. The market is currently in equilibrium. (Question 8 of 8) Now consider than an unexpected viral outbreak led to consumers ensuring that much more surfaces (counter tops, door handles, etc.) are clean and sanitized. At the same time, the government's demand for sanitizing wipes at various public institutions (hospitals, schools, etc.) has impacted the supply of sanitizing wipes in the retail market. Although the government is neither a buyer nor seller in the retail market, their requests for sanitizing wipes does affect how many sanitizing wipes firms are able to supply in the retail market. The market for sanitizing wipes adjusts afterwards and the market is in equilibrium. Suppose that after the market for sanitizing wipes adjusts, the market equations are determined. Aware of the changes in the market for sanitizing wipes, the government decides to implement a a price control of $8.80 in the market. What impact is this government policy expected to have in the market for sanitizing wipes? (complete the sentence below) After the implementation of the government policy, one would expect the market to be v. The market price is expected to be v, and the quantity demanded is expected to be v. Given this outcome, it is possible to observe v sanitizing wipes in an illegal market.
Consider that the retail market for sanitizing wipes in a small locale is described by the follow demand and supply equations respectively: P = 8,40 – 0.02Q and P = 6.60 + 0.01Q where P is the price in dollars and Q is the quantity measured in thousands per week. The market is currently in equilibrium. (Question 8 of 8) Now consider than an unexpected viral outbreak led to consumers ensuring that much more surfaces (counter tops, door handles, etc.) are clean and sanitized. At the same time, the government's demand for sanitizing wipes at various public institutions (hospitals, schools, etc.) has impacted the supply of sanitizing wipes in the retail market. Although the government is neither a buyer nor seller in the retail market, their requests for sanitizing wipes does affect how many sanitizing wipes firms are able to supply in the retail market. The market for sanitizing wipes adjusts afterwards and the market is in equilibrium. Suppose that after the market for sanitizing wipes adjusts, the market equations are determined. Aware of the changes in the market for sanitizing wipes, the government decides to implement a a price control of $8.80 in the market. What impact is this government policy expected to have in the market for sanitizing wipes? (complete the sentence below) After the implementation of the government policy, one would expect the market to be v. The market price is expected to be v, and the quantity demanded is expected to be v. Given this outcome, it is possible to observe v sanitizing wipes in an illegal market.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Consider that the retail market for sanitizing wipes in a small locale is described by the follow demand and supply equations respectively: P = 8.40 - 0.02Q and P = 6.60 + 0.01Q where P is the price
in dollars and Q is the quantity measured in thousands per week. The market is currently in equilibrium.
(Question 8 of 8)
Now consider than an unexpected viral outbreak led to consumers ensuring that much more surfaces (counter tops, door handles, etc.) are clean and sanitized. At the same time, the government's
demand for sanitizing wipes at various public institutions (hospitals, schools, etc.) has impacted the supply of sanitizing wipes in the retail market. Although the government is neither a buyer nor
seller in the retail market, their requests for sanitizing wipes does affect how many sanitizing wipes firms are able to supply in the retail market. The market for sanitizing wipes adjusts afterwards
and the market is in equilibrium.
Suppose that after the market for sanitizing wipes adjusts, the market equations are determined.
Aware of the changes in the market for sanitizing wipes, the government decides to implement a a price control of $8.80 in the market.
What impact is this government policy expected to have in the market for sanitizing wipes? (complete the sentence below)
After the implementation of the government policy, one would expect the market to be
v. The market price is expected to be
v, and the quantity demanded is expected to be
v. Given this outcome, it is possible to observe
v sanitizing wipes in an illegal market.
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