Economics: Principles & Policy
14th Edition
ISBN: 9781337696326
Author: William J. Baumol; Alan S. Blinder; John L. Solow
Publisher: Cengage Learning
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Question
Chapter 11, Problem 1TY
(a)
To determine
The social advantage of increasing the price of electric power when people use air conditioner during hot days.
(b)
To determine
The social advantage of the increase in the price of water in drought-stricken areas.
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Students have asked these similar questions
How a change in the market (including information, preferences, technology, price of alternative goods, regulations, taxes, etc.) has shifted either the supply or demand of a good. How did this change affect the market equilibrium for that good or service?
Which of the following is most likely an inferior good?
Select one:
a.an airline ticket
b.gasoline
c.an antique car
d.a bus ticket
Explain what the rationing problem is, and one strategy for dealing with it.
Chapter 11 Solutions
Economics: Principles & Policy
Knowledge Booster
Similar questions
- who benefits if the price is higher than the market price?arrow_forwardIs introducing a minimum price of alcohol is better way of reducing consumption than trying to change peoples attitudes? Why?arrow_forwardYou will analyze the Market for Gasoline Step 1: Draw a supply-and-demand diagram. Price is on the vertical axis, quantity is on the horizontal axis, demand is downward-sloping, supply is upward- sloping, and be sure to label equilibrium price and equilibrium quantity. Step 2. Change colors! If you have a highlighter or colored pencil (crayon, sharpie, whatever). Step 3. Show the change in demand or supply (only one curve will shift in each scenario). State if the curve decreases or increases. Step 4: Show the new equilibrium price and equilibrium quantity. Step 5: Repeat Steps 1-4 for each scenario. You will have a total of 4 graphs. Scenario A: A hurricane destroys refineries that produce gasoline. Scenario B: Consumers purchase electric vehicles that do not need gasoline. • Scenario C: Technological innovation occurs that reduces the cost of producing gasoline. Scenario D: Road trips become the one and only vacation option and many families opt for long-distance road trips. ● .arrow_forward
- Please no written by hand If the price of gasoline increased, what might you expect to happen? Select one: a. People would increase their use of public transportation. b. All of these are likely to happen. c. Demand for ethanol and alternative fuels would increase. d. People would reduce the amount of driving they did.arrow_forwardA loss of purchasing power due to a price increase and a decrease in the amount of one good purchased due to a decrease in price of another good to show two different effects. What are they?arrow_forward
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