Define shortages occur when price controls are in effect, Microeconomics

Assignment Help:

Why is it true that shortages usually occur mainly when price controls are in effect?

In the nonexistence of price controls the shortage generally goes away quickly because prices are bid up to remove the excess demand. But with price controls in effect the shortage generally persists. This helps describe why we generally only see long lines in effect while the government imposes a price ceiling like it did throughout the 1970s so-called gas crisis.


Related Discussions:- Define shortages occur when price controls are in effect

Production, explain 6 factors that determine volume of production

explain 6 factors that determine volume of production

Create a multi-dimensional arrays, Create a Document that displays informat...

Create a Document that displays information about cars. First, create a select with an id="make". It will not have any makes in the options until the page finishing loading. When t

Elasticity of market supply, Elasticity of Market Supply • Perfe...

Elasticity of Market Supply • Perfectly inelastic short run supply arises when industry's plant and equipment are so fully utilized that new plants should be built to ac

Employment, Employment The calculations of human input in the producti...

Employment The calculations of human input in the production procedure. In the United States, there are two major measures of employment, as determined by the Bureau of Labor

Employment and unemployment policy, EMPLOYMENT AND UNEMPLOYMENT POLICY: ...

EMPLOYMENT AND UNEMPLOYMENT POLICY: Engagement of a person in any economic activity is central to the concept of identifying a worker. A worker is one who participates in any

Calculate the output per dollar wage and unit labor cost, Using the Wage Ra...

Using the Wage Rate and Output per Hour as indicated on the table below, calculate the output per dollar wage and unit labor cost. Then decide on the optimal wage rate for this c

Deductive and inductive methods, what are the merits and demerits of deduct...

what are the merits and demerits of deductive inductive methods in economic analysis?

Programming and input-output models, Normal 0 false false f...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

States the amount of grain, If Kansas can formed either 400 tons of wheat o...

If Kansas can formed either 400 tons of wheat or 100 tons of corn and Nebraska can formed 300 tons of corn or 200 tons of wheat then it makes sense for the two states to specialize

Write Your Message!

Captcha
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