Price gouging, Microeconomics

In John Stossel's article, "In Praise of Price Gouging", Stossel argues that a law banning price gouging would result in a two-block line for gasoline after Superstorm Sandy.

a. Explain in words and using a graph why the ban on price gouging may cause a long line for gasoline. Label the axis and all the lines. Be precise.

b. Has supply changed, demand changed, or both? Explain.

c. Using two graphs, show consumer surplus before and after government intervention. Be precise. Label the axis and all the lines.

1745_Price Gouging.png

Posted Date: 4/1/2013 4:02:57 AM | Location : United States

Related Discussions:- Price gouging, Assignment Help, Ask Question on Price gouging, Get Answer, Expert's Help, Price gouging Discussions

Write discussion on Price gouging
Your posts are moderated
Related Questions

Evaluation of the WTO: The WTO is different from and an improvement over the GATT in the following respects:  •  The WTO is more global in its membership.  •  The WTO ha

#questDuring the 1990s, technological advance reduced the cost of computer chips. Explain, with the use of supply and demand diagrams, how the following markets are affected in ter

The "Battle of Sexes" is a famous game. The story is that a couple tries to decide what to do on a Friday evening. The girl prefers to go to an Opera and the guy prefers to go to t

What are the possible advantages of free trade? Firms a)  Specialisation and enhanced use of comparative advantage b)  Possibility of advantages of scale c)  Spread

Q. Show the Environmental Taxes? Environmental Taxes: Taxes which are imposed on particular activities, or particular products, which are considered to be especially damaging t

how can a consumer get maximum Equlbrim

Implicit in these analyses is the fact that without government we could have neither shortage nor surplus.  In large calculates, the suspicion of government is due to it has the po

What types of questions would concern microeconomics, versus macroeconomics? Microeconomics concerns itself with decision-making of individual consumers, firms  and other organ

Reorder Point Techniques Systems based on reorder points assume that demand is uniform and predictable and that there is no true identifiable time of need. Hence, stock must a