Principles of Economics (Second Edition)
2nd Edition
ISBN: 9780393614077
Author: coppock, Lee; Mateer, Dirk
Publisher: W. W. Norton & Company
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Question
Chapter 6, Problem 6QFR
To determine
The reason for opposition for price control by economists and the reason for price control by government.
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Students have asked these similar questions
Gasoline "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=A
If 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?
Explain why economists usually oppose controls on prices.
Chapter 6 Solutions
Principles of Economics (Second Edition)
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Similar questions
- What would happen in a market if at the same time we had a rise in the supply and a drop in the demand (assume that the laws of demand and supply apply)? The equilibrium price would definitely increase The equilibrium price would definitely decrease The equilibrium quantity would definitely increase The equilibrium quantity would definitely decreasearrow_forwardWhat if the price at a given time was less than the equilibrium price?arrow_forwardhow can price controls be used to avoid prices from increasing furtherarrow_forward
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