Which government policy measure would reduce the price of a product and increase the quantity traded in the market? Pick a,b,c or d a. The setting of a maximum price b. The setting of a minimum price c. The imposition of a tax d. The granting of subsidy

Which government policy measure would reduce the price of a product and increase the quantity traded in the market? Pick a,b,c or d a. The setting of a maximum price b. The setting of a minimum price c. The imposition of a tax d. The granting of subsidy

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter31: Public Choice And Special Interet Group Politics

Section31.6: Constitutional Economics

Problem 1ST

See similar textbooks

Related questions

Q: . Use the market demand on #3 and identify the range of price that will give a/an A. elastic demand ...

A: Individual demand curve equation Qxd=65,000-11.25Px+15Py-3.75I+7.5A ... (1)

Q: Baseod on the Harrod-Domar model, a. economic growth depends on wise public investment decisions by...

A: Since you have posted multiple questions, we will answer the first question for you. If you want any...

Q: The OEM company specializing in printed circuit board manufacturing has annual fixed expenses of P50...

A: The markets are the place where the buyers and the sellers of the goods and services get involved in...

Q: a) Which area represents consumer surplus under perfect competition? (b) Which area represen...

A: Since we only answer up to 3 sub-parts we will answer the first 3. Please resubmit the question spec...

Q: The table Consumer Surplus and Phantom Tickets shows each student's willingness to pay for a Phantom...

A: A consumer will buy a product only when its marginal willingness to pay for that product is greater ...

Q: do unregulated monopolists always make postitive economic profits? use a graph to show that a monopo...

A: Unregulated monopolist:- A monopoly is a company which is the single supplier of its commodity and h...

Q: In the market for gas, researchers have estimated the following demand and supply curves. Demand: P-...

A: Given Market demand for gas: P=17-Q100 .... (1) Market supply equation: P=3Q500 ...

Q: Price (dollars per unit) Price (dollars per unit) D Quantity (units per month) Quantity (units per m...

A: Vertical demand curve is perfectly inelastic and horizontal demand curve is perfectly elastic.

Q: u(x,y) = x + y Px=9 Py=3 U=120 Solve for hicksian demand for good x and y

A: Given Utility function: ux,y=x+y ... (1) Price of good x Px =9 and price of good Y is PY...

Q: A. Is product X a normal or an inferior product? Justify. B. How are product X and product Y related...

A: The supply curve shows the positive relationship between the price and quantity supplied. It means t...

Q: When demand increases, there is a _____ at the old equilibrium price, which puts _____ pressure on p...

A: The curve that depicts various quantities of goods being demanded by consumers at various levels of ...

Q: Consider a product market with three consumers X, Y and Z with demand function QX = 6 – PX, QY = 3 –...

A: Demand is an economic theory that refers to a consumer's desire to purchase goods and services as we...

Q: An economist finds a magic lantern and is granted one wish; she wants to choose the one policy that ...

A: An economist is the person who makes various policies and programs to implement them in an economy f...

Q: a) Employ the skill circle model and calculate skill range, skill range and total labor cost per wor...

A: Total labor cost is the aggregate cost of the hours worked by all representatives, in addition to al...

Q: or how long would P1,000,000 have to be invested at 5% simple interest for it to double its value? (...

A: Simple interest is a quick and simple way to figure out how much money you owe on a loan. The formul...

Q: • Which of the following is not typically an element in the structural change that accompanies devel...

A: The answer is - d. All of the above changes accompany development.

Q: 3. Effects of rent control Rent controls force landlords to price apartments below the equilibrium p...

A: Rent control is the price ceiling that sets the maximum rent that can be charged. It is imposed to p...

Q: RO L(R,Y) Ms/P L1 a) Based on the graph above, discuss what would happen to the interest rate starti...

A: (Since you have a posted a question with multiple sub-parts, we will solve the first three sub-part ...

Q: The OEM company specializing in printed circuit board manufacturing has annual fixed expenses of P50...

A: Given information, Annual fixed cost: P500,000,000 Variable cost per board: P1,400 Selling price pe...

Q: In the market for lattes, researchers have estimated the following demand and supply curves, Demand:...

Q: You want to save an amount of P100,000 at the end of 10 years. You are given 8% interest compounded ...

Q: 11. Given the following information, what is Aggregate Income? Employee Compensation Gross Investmen...

A: Aggregate income refers to the total income earned by citizens and businesses of the economy in a gi...

Q: A firm used $1,900 worth of peanuts and $100 worth of salt to produce peanut butter. This required c...

A: In value added method, revenue – costs provides value that the firm added in the process

Q: You deposit P10 000 into a 9% account today . At the end of two years , you will deposit P30 000 . I...

A: Deposit today = 10000 Interest rate = 9 %

Q: Consider the zero capital mobility framework. If the economy is in long-run equilibrium, determine t...

A: The amount of interest due every period stated as a percentage of the amount lent, deposited, or bor...

Q: • The economic growth is recognized (measured) as an increase in real GDP. • Literacy rates, life ex...

A: Economic growth is described as a process in which the output of commodities and services increases ...

Q: unded monthly is equivalent to an interest rate of 14 % compounded quarterly?

A: Given interest rate = 14% compounded quarterly Therefore quarterly rate = 14/4 = 3.5%

Q: Explain how third-party payment is related to health care infl-

A: The U.S. medical care framework is based on a third party payer framework, which is permitting medic...

Q: The bulk of government expenditure flows into two main areas of responsibility: education and healt...

A: Meaning of Production Possibility Frontier: The term production possibility frontier refers to the...

Q: A student loan with a simple annual interest rate of 2.5% must be paid back in tên years. A student ...

A: The formula for simple interest is given as : Simple interest = P×R×T100 Given : Interest payments =...

Q: 2.a. Based on your expected exchange rate, not using the simple rule, answer the exact foreign rate ...

A: The rate of return on a foreign deposit consists of three components: the interest rate itself, the ...

Q: nich of the following is designed to facilitate the evaluation of program performance? Management by...

A: The answer is - All of the above

Q: Year 1 Year 2 Employment (households survey) 5,100 5,200 Labor Force 6,000 6,100 Population 10,000 1...

A: The number of unemployed people in year 1 is given as: Number of people unemployed in year 1= Labor ...

Q: A firm produces a product in a competitive industry and has a total cost function (TC) of TC(q) = 90...

A: Profit can be maximized at the point where Price = Marginal cost that is P=MC and marginal revenue i...

Q: For K > 0 andL > 0, the production function F(K,L) = 2KL + K has a. increasing returns to scale b. d...

A: It has given that, K > 0 and L > 0 Now,F(K,L)=2KL+KAs K>0 and L>0lets assume K=2 and L=2...

Q: Mary deposits $3,000 into a bank account that pays an annual interest rate of 10%. After 3 years, sh...

A: In an inflationary economy, unevenly growing prices eventually diminish some customers' purchasing p...

Q: Consider the following totai cost function: TC = 1500 + 300Q - 36Q2 + 203 What is the quantity that ...

A: TC = 1500 + 300Q - 36Q2 + 2Q3 Differentiate TC w.r.t Q to get MC => MC = dTC / dQ => MC = 300 ...

Q: Which of the following is not a requirement for increased growth? a. Capital expenditure b. Increase...

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any ...

Q: Techiefy Co. wants to launch a new product. it is observed that the fixed cost of the new product is...

A: We have, Fixed cost => $35,000 Variable cost => $500 per unit Cost function, C(x) => 35000+...

Q: Answer if TRUE OR FALSE • Population growth rate has a major effect/impact on the economy of the nat...

A: In a country, population refers to the number of people living in the country and earning their live...

Q: Based on your understanding of Economic Value per Lead, explain which of the below mentioned channel...

A: Profit is the difference between total revenue and total cost. Total revenue is the revenue that is ...

Q: Four mutually exclusive projects are being considered for a new 2-mile jogging track. The life of th...

A: Answer is given below

Q: What is a real life example of what is happening at the 'cross' of the 'X', or where the labor deman...

A: The curve that depicts various quantities being demanded at various levels of price by the individua...

Q: I. Increase in interest rates causes the supply curve to shift. II. Monetary expansion causes a decr...

A: 1) Increase in the interest rate causes the supply curve to shift In the financial market interest r...

Q: Answer if true or false. • Due to trade-off, Capital & Income has an inverse relationship.

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any sp...

Q: 2) A company purchased a machine for $20,000 and paid transportation cost of $5,000. At the end of 7...

A: Salvage value is the book value of an asset after all depreciation has been fully expensed. The salv...

Q: Which of the following best captures the main idea of Bastiat's "The Candlemaker's Petition? O It is...

A: Frederic Bastiat was best known for his thesis against protectionism as he identified some ineffecti...

Q: Why is a slow growing economy a problem during a recession?

A: To find : Why is slow economy a problem during recession.

Q: Cupcakes Oranges Price Quantity Price Quantity Year (Dollars per cupcake) (Number of cupcakes) (Doll...

A: We have to find GDP deflator.

Q: SOLVE AND GRAPH THE PROBLEM. What is the present worth of two P100 payments at the end of the third...

A: Given Third year-end payment = P100 Fourth year-end payment =P100 Annual rate of interest =8%

Question

Which government policy measure would reduce the price of a product and increase the quantity traded in the market? Pick a,b,c or d

a. The setting of a maximum price

b. The setting of a minimum price

c. The imposition of a tax

d. The granting of subsidy

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Which change would cause a decrease in price and a decrease in the quantity sold? Pick a,b,c, or d a. The granting of a subsidy to producers of the product b. The removal of a price floor on the product maintained by government legislation and rationing c. The granting of a subsidy to consumers of the product d. The removal of a price ceiling on the product maintained by government legislation and purchases of surpluses
short note on subsidies? short note on price control?
An increase in an effective price ceiling will do what in the relevant market? a. The surplus will increase.b. The surplus will decrease.c. The shortage will increase.d. The shortage will decrease.
Economics (a) Draw the supply and demand curves for bread. (b) If the government imposes an extra tax on bread, show what happens to the price paid by buyers, the price received by sellers, and the quantity sold. (c) Show the deadweight loss from the tax. Explain the meaning of the deadweight loss and its impact on social welfare.
Which of the following statements about corrective taxes is generally NOT true? a. They raise government revenue. b. They reduce the quantity sold in a market. c. They increase what consumers pay for the good. d. They cause deadweight losses.
If a municipality sets a price ceiling below equilibrium for apartments in New York City, Select one: a. the price ceiling will create a surplus of apartments b. the price ceiling will create a shortage of apartments c. the price ceiling will not affect the market for apartments d. the market for more broadway plays will increase Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Most transactions in the economy generate what sort of surplus? a. consumer and producer b. producer c. consumer d. government
If a price ceiling is not binding, then a. the market will be less efficient than it would be without the price ceiling. b. there will be a surplus in the market. c. there will be a shortage in the market. d. there will be no effect on the market price or quantity sold.
Qd = 1,600 - 125P Qs = 440 + 165P Quantities are measured in millions of bushels; prices are measured in dollars per bushel. a. Calculate the equilibrium price and quantity that will prevail under a completely free market. b. Calculate the price elasticities of supply and demand at the equilibrium values. c. The government currently has a $4.50 bushel support price in place. What impact will this support price have on the market? Will the government be forced to purchase corn under a program that requires them to buy up any surpluses? If so, how much? 1四 "cause" causes
In a competitive market, if the government imposes a price ceiling below the equilibrium price, what is likely to happen?A. Surplus of goods B. Shortage of goods C. No change in quantity exchangedD. Price remains the same
Question 1. The government intervenes by setting a maximum price to be sold of 350$. What type of Price control is it? Who is it supposed to gain and lose from this intervention? 2. Will this create a surplus or shortage? Calculate 3. Calculate the deadweight losses created by this intervention 4. Calculate the new consumer Surplus created from this intervention
__________________ is the price ceiling above which there is no demand for a product: Select one: a. Production costs b. Customer's perception of value c. Maximum selling price d. Competitor's prices