Question

We are studing Principles of Microeconomics, Ch. 4: The Market Forces of Supply and Demand this...

We are studing Principles of Microeconomics, Ch. 4: The Market Forces of Supply and Demand this week. I need help on the below.

Can you relate the real-world events that might be responsible for prices changes to any of the events responsible for either supply or demand shifts?

ALSO we are reading Principles of Microeconomics, Ch. 6: Supply, Demand, and Government Policies and I need help with the below as well

What are some examples of price ceilings and what do you think about the use of price ceilings or floors?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

In real world demand curve shift can take place when the disposable income is affected. If disposable income is reduced due to increase in taxes then the demand curve will shift downward towards the left and if disposable income increases due to subsidy then demand curve shift upward towards the right.

Price ceiling is the legal maximum price for a good imposed by the government when they wish to make some good or service available at affordable price to all. For example rent control is imposed to make the housing affordable for all.

Price floor is the legal minimum price imposed by the government. For example, minimum wages.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1. Examine the effects of government policies in the light of the demand supply framework. 2....
1. Examine the effects of government policies in the light of the demand supply framework. 2. Explain the meaning of the elasticity of demand and supply and apply the concept of elasticity to real-world problems. 3. Describe the concepts of consumer surplus and producer surplus and apply the concepts to study the efficiency of the market and the inefficiency of government taxation. 4. Define price floor and price ceiling in economics. 5. Use the model of demand and supply to...
This week, we started looking into the ideas of Supply and Demand. Come up with and...
This week, we started looking into the ideas of Supply and Demand. Come up with and explain a good or service in the real world that we see, that is not gas prices, where you have seen a noticeable change in prices, then use the determinants discussed in the chapter to explain why these prices have changed.
ECO 101-S70: Final Quiz 2 CHAPTER 3: Demand, Supply and Equilibrium 1. Which of the following...
ECO 101-S70: Final Quiz 2 CHAPTER 3: Demand, Supply and Equilibrium 1. Which of the following could cause a decrease in consumer demand for product X? a.   a decrease in consumer income b.   an increase in the prices of goods which are good substitutes for product X c. an increase in the price which consumers expect will prevail for product X in the future d. a decrease in the supply of product X 2. If two goods are substitutes for...
Suppose the equilibrium price of gasoline is $3 per gallon. a. Using the demand and supply...
Suppose the equilibrium price of gasoline is $3 per gallon. a. Using the demand and supply graph, draw this equilibrium in the space below. Make this graph large, it will be used for future questions. b. Now suppose the government imposes a binding price ceiling on this market. Identify a value for this price ceiling that would be binding and show it on the graph. Graphically show whether excess demand or excess supply would result. c. With the price ceilings,...
Q1 Ch1 (20%) a. Supply: Suppose the following information is known about a market: 1. Sellers...
Q1 Ch1 (20%) a. Supply: Suppose the following information is known about a market: 1. Sellers will not sell at all below a price of $2. 2. At a price of $10, any given seller will sell 10 units. 3. There are 100 identical sellers in the market. Assuming a linear supply curve, use this information to derive the market supply curve. b. Demand: Suppose the demand for a particular product can be expressed as Q = 100/p. Calculate the...
practice quiz 1. A legal maximum price at which a good can be sold is a...
practice quiz 1. A legal maximum price at which a good can be sold is a price a. floor b. stabilization c. support d. ceiling 2. A price floor is not binding if a. the price floor is higher than the equilibrium market price b. the price floor is lower than the equilibrium market price c. people are willing to buy less when the price floor is imposed as they did before d. the government sets it 3. Rationing by...
Supply and Demand. I need to write a forum on economics using the manager’s perspective on...
Supply and Demand. I need to write a forum on economics using the manager’s perspective on how to maximize profits using supply and demand. Using at least 75 words to explain. This is some of the chapter on supply and demand. Supply and demand analysis is a qualitative tool which, empowers managers by enabling them to see the “big picture.” It is a qualitative forecasting tool you can predict trends in competitive markets, including changes in the prices of your...
Using the following supply and demand schedules: Price                                 &
Using the following supply and demand schedules: Price                                    Quantity Demanded                       Quantity Supplied $2                                                        200                                                     50 $4                                                        150                                                     80 $6                                                        125                                                     100 $8                                                        110                                                     110 $10                                                     80                                                        135 Draw the market in a graph and indicate the point of equilibrium. Show and explain the effect on this market of a price floor at $10 Show and explain the effect on this market of a price ceiling at $10 2. Assume the following production capabilities existed for each country using one week...
The assignment summary sheets will be submitted week 14 with Test 3. You are to personally...
The assignment summary sheets will be submitted week 14 with Test 3. You are to personally experience the power and satisfaction of developing these skills firsthand and to reflect and write about this experience. Over the years, many students have shared amazingly rewarding experiences as they worked on these skills. The assignment will be evaluated and be weighted as 5% of your final mark (together, they are worth 20% of your mark for Test 3, which is worth 25% of...
1) Which of the following are government policies: a. NAFTA B. Milk C. We need to...
1) Which of the following are government policies: a. NAFTA B. Milk C. We need to Preserve family farms D. Canadian Wheat Board E. a and c above 2) The following are consequences of globalization: a. Countries are less dependent on one another b. U.S. trade policy decisions affect other countries. c. Farm Programs become more effective d. It is easier for a country to protect its producers from outside competition e. a nd c above 3) The primary contributor...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT