The meaning of price controls and quantity controls, two kinds of government intervention in the markets. Concept Introduction: Price control: When there is disequilibrium in the economy whether a shortage or surplus the government has to control the prices to attain the equilibrium. For this the government uses variety of price control the main of them is price ceiling and price floor . Quantity Control: The quantity control of the government means the government puts a restriction on certain types of goods and services that are bought and sold in the market.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 5, Problem aWYWL

To determine

To explain:

The meaning of price controls and quantity controls, two kinds of government intervention in the markets.

Concept Introduction:

Price control:

When there is disequilibrium in the economy whether a shortage or surplus the government has to control the prices to attain the equilibrium. For this the government uses variety of price control the main of them is price ceiling and price floor.

Quantity Control:

The quantity control of the government means the government puts a restriction on certain types of goods and services that are bought and sold in the market.

Expert Solution & Answer

Explanation of Solution

The price controls and the quantity controls are used by the governments to achieve economic efficiency in the economy. There are mainly two kinds of price control that government use: they are price ceiling and price floor. The price ceiling is the maximum price that sellers are allowed to charge for a goods and services and the price floor means the minimum price that buyers must pay for a good and services. There is also quantity controls like quota, licensing, supply price and demand price. The restriction of quota puts an upper limit for some goods that are bought and sold in the economy. Another type of quantity control is the licensing; it gives an individual to supply a good in the economy.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Sue is a sole proprietor of her own sewing business. Revenues are $150,000 per year and raw material (cloth, thread) costs are $130,000 per year. Sue pays herself a salary of $60,000 per year but gave up a job with a salary of $80,000 to run the business. ○ A. Her accounting profits are $0. Her economic profits are - $60,000. ○ B. Her accounting profits are $0. Her economic profits are - $40,000. ○ C. Her accounting profits are - $40,000. Her economic profits are - $60,000. ○ D. Her accounting profits are - $60,000. Her economic profits are -$40,000.

Select a number that describes the type of firm organization indicated. Descriptions of Firm Organizations: 1. has one owner-manager who is personally responsible for all aspects of the business, including its debts 2. one type of partner takes part in managing the firm and is personally liable for the firm's actions and debts, and the other type of partner takes no part in the management of the firm and risks only the money that they have invested 3. owners are not personally responsible for anything that is done in the name of the firm 4. owned by the government but is usually under the direction of a more or less independent, state-appointed board 5. established with the explicit objective of providing goods or services but only in a manner that just covers its costs 6. has two or more joint owners, each of whom is personally responsible for all of the partnership's debts Type of Firm Organization a. limited partnership b. single proprietorship c. corporation Correct Number

The table below provides the total revenues and costs for a small landscaping company in a recent year. Total Revenues ($) 250,000 Total Costs ($) - wages and salaries 100,000 -risk-free return of 2% on owner's capital of $25,000 500 -interest on bank loan 1,000 - cost of supplies 27,000 - depreciation of capital equipment 8,000 - additional wages the owner could have earned in next best alternative 30,000 -risk premium of 4% on owner's capital of $25,000 1,000 The economic profits for this firm are ○ A. $83,000. B. $82,500. OC. $114,000. OD. $83,500. ○ E. $112,500.

Answer 2

Question

Chapter 5, Problem aWYWL

To determine

To explain:

The meaning of price controls and quantity controls, two kinds of government intervention in the markets.

Concept Introduction:

Price control:

When there is disequilibrium in the economy whether a shortage or surplus the government has to control the prices to attain the equilibrium. For this the government uses variety of price control the main of them is price ceiling and price floor.

Quantity Control:

The quantity control of the government means the government puts a restriction on certain types of goods and services that are bought and sold in the market.

Expert Solution & Answer

Explanation of Solution

The price controls and the quantity controls are used by the governments to achieve economic efficiency in the economy. There are mainly two kinds of price control that government use: they are price ceiling and price floor. The price ceiling is the maximum price that sellers are allowed to charge for a goods and services and the price floor means the minimum price that buyers must pay for a good and services. There is also quantity controls like quota, licensing, supply price and demand price. The restriction of quota puts an upper limit for some goods that are bought and sold in the economy. Another type of quantity control is the licensing; it gives an individual to supply a good in the economy.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 5, Problem aWYWL

To determine

To explain:

The meaning of price controls and quantity controls, two kinds of government intervention in the markets.

Concept Introduction:

Price control:

When there is disequilibrium in the economy whether a shortage or surplus the government has to control the prices to attain the equilibrium. For this the government uses variety of price control the main of them is price ceiling and price floor.

Quantity Control:

The quantity control of the government means the government puts a restriction on certain types of goods and services that are bought and sold in the market.

Expert Solution & Answer

Explanation of Solution

The price controls and the quantity controls are used by the governments to achieve economic efficiency in the economy. There are mainly two kinds of price control that government use: they are price ceiling and price floor. The price ceiling is the maximum price that sellers are allowed to charge for a goods and services and the price floor means the minimum price that buyers must pay for a good and services. There is also quantity controls like quota, licensing, supply price and demand price. The restriction of quota puts an upper limit for some goods that are bought and sold in the economy. Another type of quantity control is the licensing; it gives an individual to supply a good in the economy.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 5, Problem aWYWL

To determine

To explain:

The meaning of price controls and quantity controls, two kinds of government intervention in the markets.

Concept Introduction:

Price control:

When there is disequilibrium in the economy whether a shortage or surplus the government has to control the prices to attain the equilibrium. For this the government uses variety of price control the main of them is price ceiling and price floor.

Quantity Control:

The quantity control of the government means the government puts a restriction on certain types of goods and services that are bought and sold in the market.

Expert Solution & Answer

Explanation of Solution

The price controls and the quantity controls are used by the governments to achieve economic efficiency in the economy. There are mainly two kinds of price control that government use: they are price ceiling and price floor. The price ceiling is the maximum price that sellers are allowed to charge for a goods and services and the price floor means the minimum price that buyers must pay for a good and services. There is also quantity controls like quota, licensing, supply price and demand price. The restriction of quota puts an upper limit for some goods that are bought and sold in the economy. Another type of quantity control is the licensing; it gives an individual to supply a good in the economy.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 5, Problem aWYWL

To determine

To explain:

The meaning of price controls and quantity controls, two kinds of government intervention in the markets.

Concept Introduction:

Price control:

When there is disequilibrium in the economy whether a shortage or surplus the government has to control the prices to attain the equilibrium. For this the government uses variety of price control the main of them is price ceiling and price floor.

Quantity Control:

The quantity control of the government means the government puts a restriction on certain types of goods and services that are bought and sold in the market.

Expert Solution & Answer

Explanation of Solution

The price controls and the quantity controls are used by the governments to achieve economic efficiency in the economy. There are mainly two kinds of price control that government use: they are price ceiling and price floor. The price ceiling is the maximum price that sellers are allowed to charge for a goods and services and the price floor means the minimum price that buyers must pay for a good and services. There is also quantity controls like quota, licensing, supply price and demand price. The restriction of quota puts an upper limit for some goods that are bought and sold in the economy. Another type of quantity control is the licensing; it gives an individual to supply a good in the economy.

Answer 6

Chapter 5, Problem aWYWL

To determine

To explain:

The meaning of price controls and quantity controls, two kinds of government intervention in the markets.

Concept Introduction:

Price control:

When there is disequilibrium in the economy whether a shortage or surplus the government has to control the prices to attain the equilibrium. For this the government uses variety of price control the main of them is price ceiling and price floor.

Quantity Control:

The quantity control of the government means the government puts a restriction on certain types of goods and services that are bought and sold in the market.

Expert Solution & Answer

Explanation of Solution

The price controls and the quantity controls are used by the governments to achieve economic efficiency in the economy. There are mainly two kinds of price control that government use: they are price ceiling and price floor. The price ceiling is the maximum price that sellers are allowed to charge for a goods and services and the price floor means the minimum price that buyers must pay for a good and services. There is also quantity controls like quota, licensing, supply price and demand price. The restriction of quota puts an upper limit for some goods that are bought and sold in the economy. Another type of quantity control is the licensing; it gives an individual to supply a good in the economy.

Answer 7

Chapter 5, Problem aWYWL

To determine

To explain:

The meaning of price controls and quantity controls, two kinds of government intervention in the markets.

Concept Introduction:

Price control:

When there is disequilibrium in the economy whether a shortage or surplus the government has to control the prices to attain the equilibrium. For this the government uses variety of price control the main of them is price ceiling and price floor.

Quantity Control:

The quantity control of the government means the government puts a restriction on certain types of goods and services that are bought and sold in the market.

Answer 8

Expert Solution & Answer

Explanation of Solution

The price controls and the quantity controls are used by the governments to achieve economic efficiency in the economy. There are mainly two kinds of price control that government use: they are price ceiling and price floor. The price ceiling is the maximum price that sellers are allowed to charge for a goods and services and the price floor means the minimum price that buyers must pay for a good and services. There is also quantity controls like quota, licensing, supply price and demand price. The restriction of quota puts an upper limit for some goods that are bought and sold in the economy. Another type of quantity control is the licensing; it gives an individual to supply a good in the economy.