Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Macroeconomics Expert

Problem:

Assume you’re a policymaker in Washington DC. Lobbyists for pre-schoolers of America have put pressure on their representatives to cap prices on graham crackers. You’ve been assigned a position on the new committee to study the impact of the price ceiling on graham crackers. A price ceiling is a maximum price which can be charged. This is set BELOW the equilibrium price.

Your job is to:

a.) Demonstrate by using a supply and demand graph what such an artificial price looks like.

b.) Illustrate what the results of such a move are for graham cracker market. In other words, will there be a SHORTAGE, a SURPLUS, or neither created?

c.) At last, what are the impacts of this price ceiling for those who desire to buy graham crackers? (In other terms, what is the unintended effect of this action?) Given that there is the max price set, it will only be affordable to manufacture a certain number in order to be cost effective for the manufacturer. Which, in turn, will create a shortage.

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M914081

Have any Question? 


Related Questions in Macroeconomics

Take the following information as given for a small

Take the following information as given for a small, imaginary economy: - When income is $10,000, consumption spending is $6,500 - When income is $11,000, consumption spending is $7,300 Then, the multiplier for this econ ...

Explain why 76 years ago the rowell-sirois commission

Explain why, 76 years ago, the Rowell-Sirois Commission argued that: "The quality of education and welfare services is no longer a matter of purely provincial and local concern. In Canada today, freedom of movement and e ...

This is the four qoustions and i need it as assey form1 we

This is the four qoustions and i need it as assey form. 1. We have heard several presentations about actual MNEs. Pick at least one of these and compare and contrast it to at least one of the other companies presented. 2 ...

This is the market for movie tickets at a theater you can

This is the market for movie tickets at a theater. You can see the market demand for ticketsand the marginal and average cost for showing movies. The theater owners have determinethat they serve three segmented groups of ...

Assignment descriptionfor this assignment you will research

Assignment Description For this assignment, you will research and write an APA research paper about environmental policies, including the following: • Choose 1 U.S. environmental law. State the name of the law and the da ...

Some places limit the number of hours that alcohol can be

Some places limit the number of hours that alcohol can be sold on Sunday. Is it possible that this sales restriction could help liquor stores? Use game theory to construct your answer. Hint: even without restrictions on ...

You live in a small town with only one grocery store the

You live in a small town with only one grocery store. The demand curve for food in your town is given by -1/5Q. the grocery store has a total curve given by TC = 50 + 1.25Q A) What is the profit maximizing price and quan ...

The corleone and chung families are the only producers of

The Corleone and Chung families are the only producers of good h in the United States. The market demand for good h is h=1200-20p. The costs of production for each of them are represented by the cost functions C1(h1) = 1 ...

In times of a struggling economic situation determine the

In times of a struggling economic situation, determine the key steps that the Federal Reserve should take to help stabilize the economy. Next, explain how your proposed steps will affect money supply, interest rates, inf ...

Labor relations law600-800 words 2 scholarly

Labor Relations Law 600-800 words, 2 scholarly references Recently, you have heard rumors that employees would like to unionize. The director of human resources has come to one of your regional managers' meetings to disc ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro