More than 20 states have laws outlawing price gouging during a state of emergency, which might be declared after ahurricane or an earthquake. These laws prohibit price increases on basic necessities, such as gasoline. Which of thearguments against price ceilings might not be significant during a state of emergency?It might be the case that during an emergency, consumers have little concern over the quality of a good that isavailable.It might be the case that during an emergency, consumers have little concern over the quantity of a good that isavailable.It might be the case that during an emergency, consumers have lttle concern over the price of a good that isavailableIt might be the case that during an emergency, consumers have little concern over the location of a good that isavailable.

During a state of emergency, it is usually important that goods, especially basic necessities, are…

Answered: More than 20 states have laws outlawing…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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With respect to supply and demand, please give a specific example where a supply and demand were impacted by the lockdown. What impact did it have on the price of that good or service? What alternatives were available to avoid purchasing that good or service?
What are the side effects of price ceilings? How might price ceilings affect the supply of goods and services that are subject to the price ceilings? Do you agree or disagree with price ceilings? Why or why not? Do you agree or disagree with laws against price gouging? Why or why not?
The graph below represents a simplified hypothetical version of the market for medical procedures in Canada. If the market is allowed to set the price and quantity of procedures, what price and quantity will it set? P = $7,000, Q = 62 thousand P = $12,000, Q = 106 thousand P = $7,000, Q = 112 thousand P = $49,000, Q = 62 thousand
Use the accompanying graph to answer these questions. 20 S sº Price of X ($) 18 16 14 12 10 8 6 4 2 0 1 2 3 4 Quantity of Good X units 5 6 D a. Suppose demand is D and supply is SO. If a price ceiling of $6 is imposed, what are the resulting shortage and full economic price? Shortage: Full economic price: $ b. Suppose demand is D and supply is SO. If a price floor of $12 is imposed, what is the resulting surplus? What is the cost to the government of purchasing any and all unsold units? Surplus: Cost to government: $ c. Suppose demand is D and supply is so so that equilibrium price is $10. If an excise tax of $6 is imposed on this product, what happens to the equilibrium price paid by consumers? The price received by producers? The number of units sold? Fauilibrium price paid by consumers $1
An alternative way of thinking about the forces that cause markets to equlibrate in the real world is to think of markets reallocating the good from low to high valued use. Or to think of how the action of buyers and sellers engaging in mutually beneficial voluntary exchange (market forces) reallocates legal ownership or the physical location of the good from low to high valued used. Consider the demand at a price of $9. Look at the image below. multiple answers may be correct.
The Orlando Sentinel newspaper had an August 30, 2019 story titled “Hurricane Dorian: Florida activates price-gouging hotline.” Florida has a “Price Gouging Statute” which makes it illegal to raise prices on essential commodities when an official State of Emergency has been declared. This is, essentially, a price ceiling at the pre-emergency levels. While no one can argue with a law that tries to limit exploitation of people in times of emergency, we can as economists analyze the impact of this government intervention. Consider the market for some essential commodity, such as ice. Assume the demand curve slopes down and the supply curve slopes up. Depict the equilibrium before the emergency. On the same graph show the impact of the emergency, clearly identifying any shifts in the curves and any changes in the market equilibrium in the market for ice, keeping in mind the following two outcomes of the hurricane: Electricity is not operating, refrigerators are useless, and people…
In Louisiana, florists must be licensed by the state. In many states, auctioneers mustbe licensed as well. Barbers and beauticians are also often subject to licensing. Trade groups willusually say that these regulations are to ensure quality. What else might be at work? Does thishurt consumers? How does it affect the market? (Use a supply and demand diagram to answer.)
Suppose Atlanta imposes a rent control program that fixes rents at $300 below the equilibrium rent. With this plan Question 1 options: the deadweight loss in Atlanta's apartment market will be eliminated. the quantity of apartments demanded will increase. the quantity of apartments supplied will increase. young people and poor people will have an easier time finding apartments. there will be a surplus of apartments offered for rent.

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