Which of the following represents a market failure? a) people prefer to have more restaurant meals so the price of dining out increases b) an airline increase ticket prices and fewer people choose to fly c) a market fails to produce enough luxury cars for everyone to own d) in a poor country, education is not subsidized by the government, so fewer children go to school

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A: The result of the above case was that many gasoline distributors were not able to maintain normal…

Q: An increase in taste for the good with a simultaneous decrease in subsidies will cause the…

A: The demand for a good is influenced by a number of exogenous factors such as the income level of…

Q: Based on the information provided to you, name at least two scarce resources that were probably used…

A: Scarce resources are those economic resources that are available in limited quantity but have…

Q: The government in your country is considering three programs that affect the market for cigarettes.…

A: Program 1 and the program 2 can be implemented to support farmers while reducing the consumption of…

Q: The graph below represents the market for gasoline. The price ceiling causes a shortage of thousands…

A: Price Ceiling: The price ceiling refers to a situation when the government imposes some price…

Q: what sort of shift in supply or demand would result in a market equilibrium with higher prices and…

A: Demand curve is downward sloping and supply curve is upward sloping in the price, quantity space.…

Q: When does inefficiency exist in an economy? when a good is distributed fairly among buyers when a…

A: A situation where "we could be doing a better job," that is, achieving our goals at a lesser cost,…

Q: Identify THREE (3) conditions which may lead to an increase in market demand and TWO (2) conditions…

A: Market demand is the total demand for the goods and services of all individuals in a society during…

Q: Which of the following is NOT a way that the government can intervene in markets? a)The government…

A: Government intervention in markets refers to actions taken by the government to influence the…

Q: Which of the following is an inferior good? Group of answer choices toilet paper second hand clothes…

A: Inferior good: When an individual decreases the consumption of a certain commodity as his income…

Q: Markets usually lead to efficiency for all of the following reasons except: Businesses with high…

A: Efficiency refers to the effective use of available resources to get maximum output by given…

Q: The cost of production of a good can increase, which will cause profits to decrease. Will it cause…

A: If the cost of production rises, then the supplier will face increasing costs for every unit of…

Q: Suppose that the price of nails goes up.  What would we expect to happen in the market for hammers,…

A: Two goods or services are complementary goods when they are consumed in pairs that mean these goods…

Q: The government in your country is considering three programs that affect the market of cigarettes.…

A: Given. programs available with the government are as : Program 1: media campaigns and labeling…

Q: You are given the following market data for Venus automobiles in Saturnia. Demand: P = 35,000 - 0.50…

A: At the marketplace, an equilibrium is the position where market is operated efficiently as it is the…

Q: Answer the following questions The amount by which the quantity supplied of a product exceeds the…

A: In a market, various economic terms are used to define a specfiic market situation, such as…

Q: Suppose a government imposes a quota on the sale of an agricultural commodity in an attempt to boost…

A: A quota is a type of restriction on the sale or purchase of goods and services.

Q: When are government intervention or government regulations beneficial to consumers?…

A: The objective of the question is to understand the circumstances under which government intervention…

Q: In a market, if the price of a good is set below the equilibrium price, what will happen? a)…

A: Market equillibrum price is the point where the supply and the demand curve intersects each other.

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A: The cost of production factors, rather than market pricing, is used to calculate factor cost or…

Q: What is a free market         a) a store where goods are free       b) an economy controlled by the…

A: A free market is an economic system that is driven by the market forces of demand and supply. All…

Q: Write a Literature Review on the causes and consequences of rising food prices on lower income…

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A: Meaning of Microeconomics: The term macroeconomics refers to that situation under which the…

Q: Consider the market for bus travel, where equilibrium price and quantity is determined by demand and…

A: The market for inferior goods decreases as income rises . A stimulus is likely to lower public…

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A: Price ceiling refer to fixing the maximum price above which a seller cannot charge to its customer.…

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A: A demand curve is the graphical representation of the quantity demanded of goods and services at…

Q: The price of the Amazon Echo smart speaker is falling. In a free-market economic system where…

A: In a market, any change in market price reflects the change in demand or supply of output.

Q: A severe freeze has once again damaged the Ontario grape crop. Which of the following best describes…

A: We have damage on grape crop which is an important ingredient of wine.

Market Equilibrium and Failure

The economy of a country or any place depends on the market demand and market supply of goods and services.