Discuss the case of the price controls

Assignment Help Microeconomics
Reference no: EM131642842

Question: According to an article in the New York Times, the Venezuelan government "imposes strict price controls that are intended to make a range of foods and other goods more affordable for the poor. They are often the very products that are the hardest to find."

a. Why would imposing price controls on goods make them hard to find?

b. One of the goods subject to price controls was toothpaste. Draw a graph to illustrate this situation. On your graph, be sure to indicate the areas representing consumer surplus, producer surplus, and deadweight loss.

Reference no: EM131642842

Questions Cloud

Define what are the various types of sampling : What are the implications of this information with respect to the recruitment of human subjects in a study related to your chosen issue
How did policies exclude unassimilable and undesirable : How did policies exclude unassimilable and undesirable? Speak about IRL, eugenics science, and dillingham commission.
Does genzymes focus on orphan drugs make sense : How does Genzymes focus on orphan drugs affect the degree of competition it faces and How does it affect the bargaining power of customers
Who performed better on the given exam : Ron, wouldn't this be indicative of poor understanding of material? If your performance on exam matches your actual knowledge. Who performed better on the exam?
Discuss the case of the price controls : According to an article in the New York Times, the Venezuelan government "imposes strict price controls that are intended to make a range of foods.
Determine the contribution margin per unit : Use this information to determine FY 2016: Contribution Margin per unit and Breakeven in Units
What ethical issues do you now believe are most important : What ethical issues do you now believe are most important in interpersonal communications? Why do you believe these are important?
What methods do authoritarian governments in russia : What methods do authoritarian governments in Russia, Zimbabwe, China, Iran, Tunisia, and Syria use to control the people?
Identify and discuss a defense or foreign policy pursued : Identify and discuss a defense or foreign policy pursued by the United States government.

Reviews

Write a Review

Microeconomics Questions & Answers

  Analyze a representative sampling of school-age children

Observational Activity: Gender Roles and Aggression on TV: Guidelines This activity asks you to analyze a representative sampling of school-age children's TV programs, following the guidelines below.

  What is the nash equilibrium

The price and quantity generated by a Nash equilibrium is closer to the competitive solution than the price and quantity generated by a cartel.

  What is the systems approach to management

In organization theory, (a) what is the system's approach to management? (b) Explain the relations between boundary interactions and feedback operations in the system's Approach.

  What economists call a tragedy-of-the-commons problem

Is the problem here one of supply, or demand, or both? Is this a shift-factor problem or a quantity-supplied or quantity-demanded problem?

  Plot the industry supply curves

The top chart shows how much each farmer produces at different price levels. The lower chart shows each farmers minimum Average Total Cost, Average Variable Cost, and Marginal Cost. Based on this data (assuming these three are the only producers),..

  Question regarding the marketing operations

How are the four major functions of management (planning,organising, leading and controlling) are related to the marketing operations, finance and human resource management departments?

  Calculate total cost, fixed cost, variable cost

Using the information in data set one, which I have included in the table below, recalculate total cost, fixed cost, variable cost, marginal cost, average total cost, average variable cost and average fixed costs if the price of the fixed input (t..

  Write a strategic plan for anychosen corporation

There are three phases of strategic management. (a) Write a strategic plan for anychosen corporation with evaluation of the current status. (b) Write programs, budget, and procedures for strategic implementation for the same corporation.

  Give best example of a command-and-control regulation

When using the traditional command-and-control approach to environmental regulation, the government attempts to: a. make allowances for differences across industries and between firms. b. set standards that are applicable to all situations and does n..

  Optimal level of consumption or consumer demand

The company selling the good x starts an advertisement campagin that has the following effect on the consumer he makes decisions as if maximizing a decision utility function.

  Calculate the currency-deposit ratio

Suppose the central bank conducts an unusually large open market purchase of bonds held by banks of $1,400B due to a sharp contraction in the economy. Assume the ratios you calculated in part (a) remain unchanged, what do you predict will be the e..

  Account competitive pressures

Explain why are prices usually higher for goods or services in London as opposed to Newcastle, or New York as opposed to San Fran?

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