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
Problem: (a) Consider the Classical Linear Regression Model (CLRM) Y i = α + βX i + ε i (i) Using the method of ordinary least squares (OLS), derive an expression for

waht are the characteristics of perfect competetion market

The marginal benefit of a refrigerant in a production process (the producer's willingness to pay for its use) is 100-5Q.  The marginal damage from the use of the refrigerant on the

The largest public utility company in New South Wales (NSW) is the sole provider of electricity across all regions in the state. The monthly demand for electricity in NSW is given

In neoclassical economics, equilibrium exists when supply equals demand for a particular commodity. General equilibrium is a special (purely hypothetical) condition in which every

Questions (i)   You are an industry analyst. Last year, the production cost of Microprocessor increased remarkably due to labor unionization. Nevertheless, the industry experie


Once the organization has decided to move forward with the development of a new or modified system, it is time to determine what tasks are necessary to move the project from initia

The Objective Probability -  100 explorations out of which 25 successes and 75 failures -  Probability (Pr) of success = 1/4 and probability of failure = ¾ Given: -

PEST analysis Political factors: The political factors include laws and regulations in the market and this influences the market activities. These laws and regulations a