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The attempts to control the price of gasoline below its equilibrium level in the 1970's led to shortages and long lines at the gas pumps. On the other hand, attempts to support the price of farm products above equilibrium prices has led to large surpluses in the markets for many agricultural products in the U.S. and Europe. Usually attempts to control prices are a response to the view that market prices are not always "fair." Therefore, government regulation of prices is based on equity issues.
Dilemma: markets may not be always "fair," but attempts to interfere with its operation may lead to other problems (Recent examples: Venezuela's economy; toilet paper)*
Please, be rational in your discussion. Explain your position elaborately. Also, in responding to others, do not simply agree or disagree rather provide a constructive feedback.
You are strongly encouraged to use references from other sources to back up your claims. Remember, to cite your work.
Illustrate the price elasticity of demand at the equilibrium price and quantity.What is the price elasticity of supply at the equilibrium price and quantity.
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Steady state in a calibration of the US economy in 2000. In this problem, suppose that rate of growth of the work force is n = 0.017 and there is no exogenous technological progress.
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1. the following is a list of an economys national income account data for a particular year in billions of
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As the marketplace is in equilibrium, the required returns of the two stocks should be the same.
Calculate the labor rate also efficiency variances for the month. Was paying workers the actual wage rather than the standard wage an efficient strategy for Loring.
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