Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN: 9781305971509
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Chapter 6, Problem 4QR
To determine
The reason why economists oppose price controls.
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Students have asked these similar questions
Explain why economist usually oppose controls on prices.
If there is a decrease in supply and demand, how will equilibrium price and quantity be affected?
Why would a shift in supply or demand happen as a result in a market equilibrium with higher prices but lower sales volume?
Chapter 6 Solutions
Principles of Macroeconomics (MindTap Course List)
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Similar questions
- how can price controls be used to avoid prices from increasing furtherarrow_forwardWhy is it difficult for producers of oil to just raise the price of oil if they want a price increase?arrow_forwardGasoline "prices at the pump" go up and down, and Oil "costs per barrel" go up or down, but they do so at different rates and even in opposite directions sometimes. We want to think that demand and supply control prices where the cost of crude oil is set by the same economic conditions that determine the gas price. What are these mismatched trends (graphs of each are shown in the following web links) telling us about how demand and supply work in the market? http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=EER_EPMRU_PF4_Y35NY_DPG&f=A http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=RWTC&f=Aarrow_forward
- If there's an upward pressure on price, how does this affect the supply side of the market?arrow_forwardThe price of a gallon of gas moves up and down often. What this means is that, most of the time, the gasoline market is not in equilibrium. When its price goes up, what might be happening to cause this? When the price goes down, what might be happening to cause this?arrow_forwardWhat if the price at a given time was less than the equilibrium price?arrow_forward
- Taxes on producers cause the equilibrium price of a good toarrow_forwardIf people can't afford the equilibrium price for a good, would it be a good idea for the government to force the producer to produce it and give it to the poor people? Why or why not?arrow_forwardExplain why price moves towards equilibrium in a free market and why the equilibrium price may change over time.arrow_forward
- How does government intervention in the prices of groceries affect the equilibrium of supply and demand in the market?arrow_forwardHow can a price ceiling make consumers better off? Under what conditions might it make them worse off?arrow_forwardName the three cases when both the demand and supply increases at a certain period of time?arrow_forward
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