Question

During the spread of COVID-19, the price of surgical masks skyrocketed. Some people in Hong Kong...

During the spread of COVID-19, the price of surgical masks skyrocketed. Some people in Hong Kong suggested the government to impose a price ceiling on surgical masks. Explain, in economic sense, why this might not be a good idea in handling the needs of Hong Kong people.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

A price ceiling is a maximum limit imposed on the market price above which it cannot be sold. if the market price is above the ceiling price then the ceiling price becomes binding. In case of market for surgical masks, if there is a price ceiling then quantity demanded will be greater than quantity supplied. Then this will result in shortage of masks and the government will have to make the necessary arrangement for rationing of masks. this shows that this is not a good idea for the needs of the people because a shortage is not what the market is expecting. Instead the government should provide subsidy so that production can be increased

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
During the spread of COVID-19, the price of surgical masks skyrocketed. Some people in Hong Kong...
During the spread of COVID-19, the price of surgical masks skyrocketed. Some people in Hong Kong suggested the government to impose a price ceiling on surgical masks. Explain, in economic sense, why this might not be a good idea in handling the needs of Hong Kong people.
During the spread of COVID-19, the price of surgical masks skyrocketed. Some people in Hong Kong...
During the spread of COVID-19, the price of surgical masks skyrocketed. Some people in Hong Kong suggested the government to impose a price ceiling on surgical masks. Explain, in economic sense, why this might not be a good idea in handling the needs of Hong Kong people.
Argue in favor or against a government enforced price ceiling for surgical masks during a pandemic....
Argue in favor or against a government enforced price ceiling for surgical masks during a pandemic. Which side of the argument you take doesn't matter: whether it's in favor or against a price ceiling, the economic justification matters the most.
With the outbreak of COVID-19, many people in Hong Kong choose cooking at home instead of...
With the outbreak of COVID-19, many people in Hong Kong choose cooking at home instead of dining out to reduce the chance of contacting Coronavirus. At the same time, it is observed that many restaurants have closed down. Given that many restaurants cut their menu prices in this period, explain, with the aid of a supply-and-demand diagram, how the above changes affect the market for dining out meals in restaurants.
With the outbreak of COVID-19, many people in Hong Kong choose cooking at home instead of...
With the outbreak of COVID-19, many people in Hong Kong choose cooking at home instead of dining out to reduce the chance of contacting Coronavirus. At the same time, it is observed that many restaurants have closed down. Given that many restaurants cut their menu prices in this period, explain, with the aid of a supply-and-demand diagram, how the above changes affect the market for dining out meals in restaurants.
(6 marks) With the outbreak of COVID-19, many people in Hong Kong choose cooking at home...
With the outbreak of COVID-19, many people in Hong Kong choose cooking at home instead of dining out to reduce the chance of contacting Coronavirus. At the same time, it is observed that many restaurants have closed down. Given that many restaurants cut their menu prices in this period, explain, with the aid of a supply-and-demand diagram, how the above changes affect the market for dining out meals in restaurants.
The following information is extracted from an article1 about Coronavirus relief measure in Hong Kong. Hong...
The following information is extracted from an article1 about Coronavirus relief measure in Hong Kong. Hong Kong’s embattled leader on Wednesday unveiled her government’s biggest coronavirus financial relief package so far, offering a HK$137.5 billion (US$18 billion) lifeline to save ailing businesses and ensure some 1.5 million workers would continue to get paid in the tough months ahead. The government would, through employers, pay 50 per cent of salaries for half a year, each worker’s monthly subsidy capped at HK$9,000....
a. In the following news report about a survey for collecting public views on land use...
a. In the following news report about a survey for collecting public views on land use of Hong Kong, is Dr Victor Zheng Wan-tai a “relevant knower” of the issue? Explain your answer. b. The headline of the news uses the word “useless” to describe public’s views towards the land use survey. Suggest TWO OTHER VIEWS of the public also found in the report. c. Examine the news article to look for TWO areas where Framing might have been applied....
Argentina and Ecuador: Understanding the Currency Crisis While fiscal policy is never far from the mind...
Argentina and Ecuador: Understanding the Currency Crisis While fiscal policy is never far from the mind of your average Argentine, who remembers the tough times and hyperinflation of the 1980s, the events of 2001 and 2002 have brought fiscal policy back to the forefront of public concern. Though the early 1990s may have been characterized by financial optimism, Argentina has been in a recession since Brazil's 1998 monetary crisis sent shockwaves across the regional and global markets. In early 2002,...
Exploring Innovation in Action Power to the People – Lifeline Energy Trevor Baylis was quite a...
Exploring Innovation in Action Power to the People – Lifeline Energy Trevor Baylis was quite a swimmer in his youth, representing Britain at the age of 15. So it wasn’t entirely surprising that he ended up working for a swimming pool firm in Surrey before setting up his own company. He continued his swimming passion – working as a part-time TV stuntman doing underwater feats – but also followed an interest in inventing things. One of the projects he began...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT