What are the impacts of pricing ceiling market equilibrium

Assignment Help Macroeconomics
Reference no: EM131192306

Topic 1: Effects of Price Controls on Market Equilibrium

One method of government interventions in markets is through price controls. The government intervenes to regulate prices by imposing price controls, which are legal restrictions on how high or low a market price may go. Price ceiling is the maximum price sellers are allowed to charge for a good or service. Price floor is the minimum price buyers are required to pay for a good or service.
Higher education has become increasingly expensive and hence education now costs much more than it did before. One of the ways the government controls prices is by setting a floor or a ceiling on the market.

Explain what might happen in the market for higher education if the government placed a price ceiling on the cost of one undergraduate credit hour. Explain your answers using economic theory on impacts of price ceiling on market equilibrium.

Discussion Checklist:

A. What are the impacts of pricing ceiling market equilibrium in education market?
B. Does it matter whether or not the ceiling is set above or below the equilibrium price?
C. Who might benefit from this price restriction? Who might be harmed from this price restriction?

Reference no: EM131192306

Questions Cloud

Dual-hatted -department of defense : He wants to a variety of tablets to access and e-mail from web sites (Note: Coast is dual-hatted -Department of Defense and of Homeland SecurityHe has been briefed a variety of devices the network but they seemed to be focused one or two. How can ..
Describe both the advocates position and the critics positio : Evaluate both the advocates' position and the critics' position, then Determine which position you support and defend your position in the paper.
Different types of services : What are the different types of services provided by JBoss server?
The evidence imply about the moral hazard costs of ui : What does this interpretation of the evidence imply about the moral hazard costs of UI?- How could you empirically distinguish between this explanation and the explanation put forth in (a)?
What are the impacts of pricing ceiling market equilibrium : What are the impacts of pricing ceiling market equilibrium in education market? Does it matter whether or not the ceiling is set above or below the equilibrium price? Who might benefit from this price restriction?
Levels in continuous representation : What are Capability Levels in Continuous Representation? Explain them.
How much is the per-unit tax on cigarettes : How much is the per-unit (pack) tax on cigarettes? What price do consumers pay after the tax? How much tax revenue is collected? What is the amount of deadweight loss after the tax is imposed on cigarettes?
Which states system subsidizes firms with high layoff rates : The state of Kentucky had a much wider range in the payroll tax rates paid by different experience-rated firms than did Oregon. Which state's system subsidizes firms with high layoff rates to a greater degree?
Draw an indifference curve for ibrahim : Draw an indifference curve for Ibrahim, showing where he will consume. Will the usual consumer equilibrium condition hold at her utility maximization point?

Reviews

Write a Review

Macroeconomics Questions & Answers

  Difference among an increase in demand and an increase

Could you please explain fully the difference among an increase in demand and an increase in quantity demanded, by giving an example of what would cause an increase in quantity demanded and please illustrate the effect of such an increase with a ..

  How the catch-up effect would work for the country

Select a nation that has a low per capita income and discuss how the catch-up effect would work for that country. Consider the determinants of productivity and explain some of the things that would tend to prohibit or limit that country's ability ..

  Demand and supply functions

1. Using the following demand and supply functions answers the following questions. Qd = 22 - 2p + 0.5Y; Qs = 15 + 4p - 2CI; where Y = income and CI - cost of inputs.

  Question 1consider a government uses an expansionary fiscal

question 1consider a government uses an expansionary fiscal policy to get out of a recession. use the islm model and

  Differences between behavioral and equilibrium relationships

Discuss the differences between behavioral and equilibrium relationships and explain the basic Idea behind the Solow model and its relationship with technological advance. What will add to capital stock and detract from it.

  Leaving aside any normative issues involved

Leaving aside any normative issues involved in this discussion,what would happen to the level of demand for union workers in theU.S. if the anti-sweatshop movement is successful?

  Different predictions of income development

What impact would the different predictions of income development, inflation rate development and tariff rate development have on the potential demand of Schmeckt Gut?

  Explain how remaining two chief competing policy positions

the other an approach that calls for more intervention to improve the working of the market and the well being of society. Explain how these remain the two chief competing policy positions that divide more conservative from more liberal policies i..

  Market imperfection associated with negative externalities

An essay on Market imperfection associated with negative externalities.

  Nominal holding periodrate of return

a. If you buy the bond for $920, what is its nominal yield to maturity? b. What is the bond's ex-ante real yield to maturity, if the inflation rate is expected toaverage 2% per year over the next 3 years? c. Suppose that after 2 years, you sell the..

  Determine the steps that the federal reserve

Explain how each of the following variables will be affected by proposed steps that you have identified in the first part of the discussion: money supply, interest rates, inflation rate, aggregate demand, and output. Provide support for your response

  Supply factors of economic growth

Determine the four supply factors of economic growth and also find the demand factor?

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