--%>
Assignment Help - homework help

Market Apparent program

For the question below, utilize the given information. The market for gizmos is competitive, with an increasing sloping supply curve and a downward sloping demand curve. With no govt. intervention, the equilibrium price is $25 and the equilibrium quantity is 10,000 gizmos. Consider the given programs of government intervention:

Program I: The govt. obliges an excise tax of $2 per gizmo
Program II: The govt. gives a subsidy of $2 per gizmo for gizmo producers.
Program III: The govt. obliges a price floor of $30.
Program IV: The govt. obliges a price ceiling of $20.
Program V: The govt. permits no more than 8,000 gizmos to be generated.

Beneath which of such programs will the market obvious? Explain briefly.

E

Expert

Verified

With the subsidy or excise tax, the market will obvious (that is, Programs I and II).

With the price floor (that is, Program III) there will be surplus supply, therefore the market will not apparent.

With the price ceiling (that is, Program IV) there will be surplus demand, therefore the market will not apparent.

With the production quota (that is, Program V) the price consumers pay will surpass $25, therefore there will be surplus supply. The market will not apparent.

   Related Questions in Business Economics

  • Q : Introduction of the term Financial

    Give a brief introduction of the term Financial Leverage?

    		•
  • Q : Explain the shapes of the

    Specify and explain the shapes of the marginal-benefit and marginal-cost curves and use these curves to determine the optimal allocation of resources to a particular product.  If current output is such that marginal cost exceeds marginal benefit, should more or l

    		•
  • Q : Explain how women expanded production

    Explain how women expanded production possibilities?

    		•
  • Q : Problem on productive contribution

    Suppositions underpinning simple production possibilities frontier models don’t comprise a need that: (i) Net resources are fixed. (ii) All resources are efficiently employed. (iii) Technology is steady. (iv) Resource owners are paid according t

    		•
  • Q : Higher opportunity costs of attendance

    Economics professors would attribute students’ higher rates of attendance on days while examinations are administered to the: (w) intensified needs to learn valuable material. (x) higher opportunity costs of missing set relative to other schedul

    		•
  • Q : Decreases in opportunity costs of

    The opportunity costs of production and consumption for most resources and goods tend to be decreased by: (w) private monopoly power. (x) price floors. (y) intense competition. (z) price ceilings. Hey friends pleas

    		•
  • Q : Parking meters may yield little or no

    Explain: “Even though parking meters may yield little or no net revenue, because of the rationing function they perform nevertheless be retained”

    		•
  • Q : Human Resource Management problems

    Question Write a report on a local firm that faces Human Resource Management problems. Pick two major problems and provide solutions to it. The company selected must

    		•
  • Q : Elucidate Reliance on technology and

    Elucidate Reliance on technology and capital goods of the market system?

    		•
  • Q : What problem does barter entail What

    What problem does barter entail?

    		•