A price above equilibrium

Assignment Help Business Economics
Reference no: EM13774327

Suppose the government sets an effective price floor (that is, a price above equilibrium) in the market for oranges and agrees to buy all oranges that go unsold at that price. The oranges purchased by the government are discarded.

a. Illustrate the number of oranges purchased by the government.

b. Illustrate the gains and losses to all relevant groups of Americans and the deadweight loss.

Graph (illustrate)

Reference no: EM13774327

Questions Cloud

Slanting palpebral fissures issues : What do you suspect? What kind of client teaching is appropriate in this situation?
Stabilize the exchange rate of its currency : Assume quantity theory of money holds with constant K and Kf. Suppose Mexico wants to stabilize the exchange rate of its currency with US dollar (dollars/peso). If Mexico has a real GDP growth rate of 6%, what is the money supply policy Mexico should..
Examples of moral hazard : Identify which of the following situations currently faced by the World Bank or the International Monetary Fund are examples of adverse selection and which are examples of moral hazard.
Cassandra is sitting cross-legged on her rug with her arms : Cassandra is sitting cross-legged on her rug with her arms outstretched. she closes her eyes and make a sound like "ummm." she continues thus procedure. Cassandra is demonstrating __, and the sound is a(n)___.
A price above equilibrium : Suppose the government sets an effective price floor (that is, a price above equilibrium) in the market for oranges and agrees to buy all oranges that go unsold at that price. The oranges purchased by the government are discarded. Illustrate the numb..
Comparative advantage and competitive advantage : Distinguish between comparative advantage and competitive advantage (may take some research on your part). Which is used by economists as a justification for international trade? Why?
Describe primary secondary and tertiary methods of health : As adolescents separate from their parents and gain a sense of control, sometimes they are unable to balance stresses. As a result, depression may occur, and, at times, suicide may be the outcome. Choose the topic of either adolescent depression or a..
Present a thorough analysis of fiscal policy : Present a thorough analysis of fiscal policy. Detail the effects of discretionary fiscal policies, the various policy levers, the impact of crowding out, time lags, and automatic stabilizer
Period of rapid economic growth : From 1983 to 1987, a period of rapid economic growth in the U.S., total savings by contributors to IRAs increased by approximately the amount of their IRA contributions. Does this show that virtually all of their IRA savings were new savings money th..

Reviews

Write a Review

 

Business Economics Questions & Answers

  Illustrate what are the main determinants of the amount

Illustrate what are the main determinants of the amount of excess reserves held by banks. Illustrate what is the primary determinant of deposits and the money supply in the long-run.

  Total quantity produced also firm profit

Find the total quantity produced also every firm's profit in equilibrium. Express Illustrate what happens to these when Firm 1 changes its technology as above.

  Sacred temple hidden in the deep mountains

Once upon a time there was a sacred temple hidden in the deep mountains, in which believers gathered to exercise meditation to become saints. The believers sat in a circle facing each other while meditating during the day, and retired to their separa..

  Calculate the arc price elasticity

Sales are 3,100 at a price of $200 and 2,400 at a price of $300. Calculate the price of elasticities of demand using $200 as the base value; then use $300 as the base value. Calculate the arc price elasticity and compare the three calculations. How d..

  Mechanical engineer who recently graduated with a masters

mechanical engineer who recently graduated with a masters degree is contemplating starting his own commercial heating

  Johannas marginal cost is constant

Line segments will automatically connect the points. Remember to plot from left to right also plot among integers.

  Q1 assume you are the chief economic advisor to the

q1. assume you are the chief economic advisor to the president of the united states and the president has asked you to

  Calculate the own price elasticity

Demand for good X has been estimated at Qxd = 12-3Px+4Py. Suppose that good X sells at $2 per unit and good Y sells at $1 per unit. Calculate the own price elasticity.

  What happened to ikonomia actir net foreign assets

What happened to Ikonomia actir's net foreign assets during 2007. Did it acquire or lose foreign assets during year. Compute official settlements balance. Based on this number, what happened to central banks (foreign) reserves.

  Compute demand of price elasticity

Compute demand of price elasticity of for natural gas sold to the US.

  Illustrate what relationship must hold between x and p

Illustrate what relationship must hold between x and p so that A second order stochastically dominates B.

  What benefit do economic models provide

What benefit do economic models provide to decision makers seeking to manipulate economic conditions? In your posts, specifically address the models GDP, GDI, and their major components.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd