Elucidate entity establishes a price ceiling

Assignment Help Macroeconomics
Reference no: EM1328609

Microeconomics concepts

1. What entity establishes a price ceiling and does it require government sanction for violators? Will it result in a surplus or a shortage?

2. If a producer overproduces and sets the price of his product too high to allow him to sell all of his production, does this cause a surplus or an excess supply condition?

3. What entity establishes a price floor and does it require government sanction for violators? Will it result in a surplus or a shortage?

4. An increase in the supply of a good is expected to have what effect on its price? What will be the effect on the demand for substitutes?

5. If the own-price elasticity of demand for gasoline is -.2 and there is a 10% increase (+.10) in the price of gasoline, what will be the percentage change to the equilibrium demand for gasoline?

6. Define a black market in terms of a Price Ceiling.

7. A regulated transportation monopoly is losing money. The Monopoly goes to its government regulators with a request to raise their rates (price). An economist on the regulatory commission says that raising rates will bring in less revenue as customers change to substitute forms of transportation. The Monopoly and the economist have different views of the elasticity of demand for the monopoly's transportation services. Which one thinks the demand is inelastic and which one thinks it is elastic?

Reference no: EM1328609


Write a Review


Macroeconomics Questions & Answers

  Limitation of national income accounting

Briefly accounting describe two limitations of national income. On the basis of these data calculate GDP, GNP, NDP, NI, PI, and disposable personal income.

  Explain how have us economic or fiscal policies affected

Explain how have US economic or fiscal policies affected employment rates

  Macroeconomic variables during economic expansion

Because net exports are counter-cyclical, analyze how the following change during an economic expansion: Consider the case in the context of a flexible exchange rate and a fixed exchange rate.

  Budget set formation and explanations for concepts

Describe the opportunity cost of good 1 in terms of good 2. Find out the opportunity cost of good 1 at the point where x1=1.

  Impact of lowering the speed limit

Using a supply and demand graph, make one shift of wither the supply or demand curve to illustrate the likely result of this action.

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Questions on fiscal policy and monetary policy

If the reserve ratio is 15 percent and commercial bankers decide to hold additional excess reserves equal to 5 percent of any newly acquired checkable deposits, then the relevant monetary multiplier for the banking system will be:

  Comprising monetary and-or fiscal policies

Illustrate what effects could be taken, comprising monetary and-or fiscal policies

  Compute the elasticity of demand in going

Compute the elasticity of demand in going from 2 unit to 3 units. Is the demand elastic or inelastic in this range.

  Calculating equilibrium price and quantity for monopoly

A Monopolist is deciding how to allocate output between two markets. The two markets are separated geographically. Demand and marginal revenue for the two markets are given by:

  Expected utility and total utility

Fewer potatoes are demanded when the price of rice has fallen from $ 0.25 to $0.10 cents per pound-The Molly Jock wants to buy a high definition television to watch the Olympic Greco roman wrestling competition in Beijing.

  Best level of output per day

In Bayonne, New Jersey, there is a large beauty salon and a number of smaller ones.  The total demand function for hair styling per day is Q=180-10P, where P is in dollars.

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