not use ai please If a policymaker wants to make society as well off as possible in terms of economic surplusin a competitive market, then the policymaker should...C) Choose any price because losses to consumers are always exactly offset by gains to producers,and vice versaRaise prices, as producers generate more surplus in general.Lower prices, as consumers generate more surplus in general.Not do anything.

In a market with lots of competition, the equilibrium price is where supply and demand meet. The…

Answered: If a policymaker wants to make society…

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter4: Prices: Free, Controlled, And Relative

Section: Chapter Questions

Problem 5QP

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Typed and correct answer please. This question is very important for me. I
The government often meddles in markets, using price ceilings and price floors and taxes which move the market away from free market equilibrium. Should the government meddle in markets? When should it meddle? Should there be rent controls or other price ceilings? Should the government set a minimum wage be $15? Should the government control the price of life saving medicine, such as insulin? Should they set a price ceiling? Or use taxes? How does elasticity of demand affect who will pay the tax? What are some reasons that the government should meddle in markets using price controls and taxes?
Consider a market that is initially in equilibrium and the equilibrium price and quantity are P and Q respectively. Then, the government decides to impose a price ceiling at a price of Pc that is less than P. Which of the following statements is correct? 1. After the price ceiling is imposed, the quantity demanded is less than the quantity supplied on the market. 2. After the price ceiling is imposed, the quantity actually sold in the market is lower than it was before the price ceiling was imposed. 3. Producer surplus in the market increased after the price ceiling was imposed. 4. Since Pc is less than P, the price ceiling is effective and therefore, there is no deadweight loss in the market.
It says the option four is correct. Can you explain how? If you can graph it so that I can see it that would be awesome. To me, it seems like the gain in consumer surplus would be larger than the loss of producer surplus. But the correct option, option D says that’s not right.
A market is described by the the supply and demand curves:Qs=2P QD=300-P a.Solve for the equilibrium price and quantity.b.If the government imposes price ceiling of $90,does a shortage or surplus or neither develop?What are the price, quantity supplied,quantity demanded,and size of the shortage or surplus?c.If the government imposes price floor of $90,does a shortage or surplus or neither develop?What are the price, quantity supplied,quantity demanded,and size of the shortage or surplus?d.Instead of a price control,the government levies a tax on producers of $30.As a result, the newpply curve is:Qs(2P-30).Does a shortage or surplus or neither develop?What are the price, quantity supplied,quantity demanded,and size of the shortage or surplus?
The demand and supply of widgets is given below. Q is quantity, and P is price of widgets Q = 5000 – 6P Q = 1000 + 2P How much is equilibrium quantity and equilibrium price (show me your work) If there is a price control of $700 imposed by the government for widgets. What type of price control is this called? Does this type of price control cause a shortage or surplus, and how much is it. Draw the Demand and Supply, and show the point for part a and b.
A market is described by the following supply and demand curves: QS = 3P QD = 400−P The equilibrium price is $ and the equilibrium quantity is . Suppose the government imposes a price ceiling of $120. This price ceiling is , and the market price will be $ . The quantity supplied will be , and the quantity demanded will be . Therefore, a price ceiling of $120 will result in . Suppose the government imposes a price floor of $120. This price floor is , and the market price will be $ . The quantity supplied will be and the quantity demanded will be . Therefore, a price floor of $120 will result in . Instead of a price control, the government levies a tax on producers of $40. As a result, the new supply curve is:
Consider a market with the following demand and supply - curves: QD = 500 - 2p, Qs = p + 50. At the market equilibrium, what is the consumer surplus (CS) and producer surplus (PS)? A. CS = 10000, PS = 0. B. CS=0, PS = 10000. C. CS = 5000, PS = 5000. D. CS = 10000, PS = 10000. E. None of the above.
The daily demand and supply curves for milk in the small town of Dairyville are as shown in the figure. Suppose the government imposes a price ceiling on milk of $5 per gallon. a. How many gallons of milk will be bought and sold each day after the imposition of the price ceiling? gallons per day b. What will be the excess demand for milk each day after the imposition of the price ceiling? gallons per day c. What will be consumer surplus after the imposition of the price ceiling? $ per day d. What will be producer surplus after the imposition of the price ceiling? $ per day e. What will be the loss in total economic surplus each day that results from the imposition of the price ceiling? $ per day
Which of the following is NOT a way that the government can intervene in markets? a)The government can set minimum wages. b)The government can raise taxes on a particular item. c)The government can pass laws on sales taxes. d)The government can stop the forces of demand and supply from working in markets.
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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?

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