Market prices are better than government - determined prices because they_____ reflect the value of a good to society and they____reflect the cost of making it. Question 3 options: Do; do. Do not; do not. Do; do not. Do not; do.
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Market prices are better than government - determined prices because they_____ reflect the value of a good to society and they____reflect the cost of making it. Question 3 options: Do; do. Do not; do not. Do; do not. Do not; do.
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- Analyze the situations below and supply the correct answer in each column. Once completed, prepare a one-paragraph conclusion to your analyses. Column A: Which side is affected? Write D for demand and S for supply. Column B: Which of the non-price determinants affect demand or supply? Write: Non-price determinants of demand Non-price determinants of supply D1- Consumers' tastes S1 Resource prices D2- Number of buyers S2- Technology D3- Income S3- Taxes and subsidies D4 Prices of related goods S4- Prices of other goods D5- Consumer expectations 5- Producer expectations Column C: To which direction will the curve shift? Write for right. Column D: What happens to the equilibrium price after the shift? Draw a smiling face, O, for an increase, and draw a sad face, , for a decrease. Column E: What happens to the equilibrium quantity after the shift? Draw a smiling face, 9, for an increase, and draw a sad face, 8, for a decrease. Lesson 2.3: Factors Affecting Demand and Supply E Student…Suppose demand is given by p=100-q. Suppose price in the market, if opened, is $50. Suppose opening the market requires an investment of $1000 by the government. Should the government invest? assume no other projects are considered. Assume the government will need to pay interest on the investment. Question 3 options: No Yes Yes, if the interest is less than $250 The question does not have enough information to know for sure.The supply and demand curves for bananas are as follows: QD = 3,750 - 725P QS = 920 + 690P where Q = millions of bushels and P = price per bushel. a) Calculate the equilibrium price and quantity that would prevail in the free market. b) The government has imposed a $2.80 per bushel support price. How much bananas will the government be forced to purchase? c) Calculate the change (gain/loss) in consumer surplus that would occur due to the support program. Does the consumer surplus increase or decrease under the program?
- For each of the alternatives below, explain for each one whether it is true, false or uncertain, based on the following statement:"Flour is an inferior good. So, if per capita income falls":(a) the supply of flour will shift to the left.(b) the quantity of flour supply will fall.c) The demand for flour will shift to the right.d) The demand for flour will shift to the left.Public goods Three people have a demand for some good: P1 = 100 -Q P2 = 200 - 2Q %3D P3=150-3Q First, find the market demand. If the marginal cost of supplying the good is $90 how much should be supplied and what price does each pay? Repeat if the marginal cost is $210 per unit. ANSWER: At a MC of $210 Q = 40 and each pays 60, 120, and 30 respectively per unit. Need help trying to solve step by step on how to approach thisHello please answer! What is a good or service that has become expensive/cheap due to (a) natural scarcity/abundance of supply or naturally high/low demand, and (b) artificial mean (e.g., government policy, competition restricting practices)?
- The price of Apple has increased. Due to this the supply of apple will rise. True/FalseMarket failures Multiple Choice are only a concern when they result in prices that are too high. apply exclusively to situations where markets do not produce any of an economically desirable good. result in overproduction or underproduction of a good. result from government interference in markets.Steve and Michelle are farmers who sell their surplus manure to other local farmers. Manure is sold by the cubic yard. (Dirt, soil, mulch etc. are often sold by this measurement.) Steve and Michelle have no costs of production. (Buyers come and pick up their manure themselves.) Market demand is given as P = 96 - 4Q, MR = 96 - 8Q, and MC = ATC = 0. Complete parts a through d below. ..... a) If Steve and Michelle agree to split the monopoly outcome, how much would each farmer produce and what would be the individual profits? Each farmer would produce 6 cubic yard(s). The profit for each farmer would be $ 288 b) Suppose Steve decides to cheat on the agreement and produces 7 cubic yards. What is Steve's profit now? What is Michelle's profit now? Steve's profit is now $ Michelle's profit is now $ c) Suppose Michelle considers retaliation and thinks about producing 7 cubic yards. What would her and Steve's profits be in this case? Should Michelle retaliate? In this case, Michelle's profit…
- The government in your country is considering three programs that affect the market for cigarettes. Program 1: Media campaigns and labeling requirements aimed at making the public aware of the danger of cigarette smoking. Program 2: A price support program for tobacco farmers. Program 3: A cap on the number of cases of cigarettes sold per quarter at 20,000 cases. The aim of the government is to support farmers while reducing the consumption of cigarettes. What program or combination of programs should be implemented and why?John is planning to travel to a country where there is some risk of contracting yellow fever. The direct market price for the medication that prevents yellow fever is $125. It would take him 2 hours to visit his doctor and get the prescription filled. The opportunity cost of his time is $25/hour. If he contracts yellow fever we assume that he will be sick and not able to work full days for two weeks. Under these conditions, let's assume he can work half days and has no vacation or sick time to use. His company will not pay him when he is sick and not working. His out of pocket expenses for medication, doctors’ visits, and lab tests to treat the yellow fever will be $500. His normal salary is $1,000 per week. John believes that his chance of getting yellow fever without preventative medicine is about 20%. His chance of getting yellow fever with the medication is 0%. There is no pain and suffering to be considered in this problem. What is the maximum price that John would pay…True/False . A variety of factors can shift the demand curve . Rising demand always leads to higher levels of prices. High prices indicates high inefficiency and a mis-functioning of markets.. The simplest and most efficient way to address this is for government intervene in the market by controlling prices. Controlling prices would always benefit consumers. However there are better and more superior ways that don’t involve the government controlling prices including increasing competition and marginal productivity/product; and reducing marginal cost. Instructions : Assume there is competition in the market . Fully explain in detail with graphs and Math to prove your argument. Explain in detail the pros and cons of policies to be used, that are backed up with graphs, maths and etc. Use real life examples to back up your argument. Logically and correctly link all your arguments. Explain “HOW” and the “WHY” Properly cite all your sources, including graphs, maths and etc.