--%>
Assignment Help - homework help

Original equilibrium and effect of price ceiling on gas

Assume that the equilibrium price of a gallon of gas is $1.40 per gallon. The government decides to place a price ceiling on gasoline & will not let sellers to charge more than $1.50 per gallon. Draw this using a graph. Ensure that you illustrate the original equilibrium and the effect of the price ceiling on the market. What will occur in this market?

There will be no influence of this price ceiling on the market. If sellers attempt to charge a price of $1.50 per gallon, quantity demanded (QD) would be lower than quantity supplied (QS). It means that there would be a surplus. As the price ceiling is a maximum price, it does not stop the price from falling as it would in this case. Thus, the price of gasoline will remain $1.40 per gallon.

 

348_vs45.png

   Related Questions in Biology

  • Q : Best identification hypothesis for

    What is best identification hypothesis for a plant tissue seen under microscope having most cells undergoing cell division?

    		•
  • Q : Impact of Globalization in

    Growing internationalization of business has its impact on people management. The amazement is required to cope with problems of unfamiliar laws, languages, practices, competitors, attitudes, management styles, work ethics, and more, personnel functions such as hiring, training, compensating, mai

    		•
  • Q : What is Facilities Consolidation

    Facilities Consolidation: It is the manufacturing, distribution and facilities management functions of a corporation are frequently in the crosshairs of cost reduction efforts. It is due to important fixed and variable costs of production, distributio

    		•
  • Q : Ureotelic and the uricotelic excretions

    Comparing the toxicity and requirement for dilution in water how dissimilar are the ureotelic and the uricotelic excretions? Give some illustrations of animals which present such respective kinds of excretion?

    		•
  • Q : Description of hematopoiesis Give a

    Give a brief description of the term hematopoiesis?

    		•
  • Q : Resting potential-action

    How dissimilar are the concepts of resting potential, action potential and excitation threshold regarding neurons?

    		•
  • Q : Organic reactions in which water is

    Water has main participation in organic reactions. What are the illustrations of two kinds of organic reactions in which water is correspondingly incorporated or discharged in the products of such reactions?

    		•
  • Q : Calculating the Probability of Project

    Calculating the Probability of Project Completion:A) The probability of completing the project in a specified scheduled time involves calculating the number of standard deviations the desired completion time is from the average project duration

    		•
  • Q : Origination of liver and pancreas from

    Explain the germ layer from which do the liver and the pancreas originate? Specify the other organs and tissues which are made from that germ layer?

    		•
  • Q : Examples of representing beings-type of

    Mollusc identity card. How molluscs typified according to examples of the representing beings, type of symmetry, basic morphology, coelom and germ layers, respiratory system, digestive system, circulatory system, nervous system, excretory system and types of a reprodu

    		•