This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Suppose the government decides that a particular commodity is a luxury and decides to fix its price ... (Read 97 times)

Coya19@aol.com

  • Hero Member
  • *****
  • Posts: 601
on: Jun 30, 2018
Suppose the government decides that a particular commodity is a luxury and decides to fix its price above the market-determined price. What implications could this policy have?
 
  What will be an ideal response?

Question 2

Refer to the above figure. Which of the graphs is consistent with the Keynesian short-run aggregate supply curve?
 
  A) Graph A B) Graph B C) Graph C D) Graph D


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

momo1250

  • Sr. Member
  • ****
  • Posts: 338
Reply #1 on: Jun 30, 2018
Answer to Question 1

If the government fixes the price of a commodity above the market-determined price, it will provide an incentive to sellers to supply more. This will result in an excess supply of the commodity.

Answer to Question 2

B


Coya19@aol.com

  • Member
  • Posts: 601
Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

vickyvicksss

  • Member
  • Posts: 351
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Vaccines cause herd immunity. If the majority of people in a community have been vaccinated against a disease, an unvaccinated person is less likely to get the disease since others are less likely to become sick from it and spread the disease.

Did you know?

In 1886, William Bates reported on the discovery of a substance produced by the adrenal gland that turned out to be epinephrine (adrenaline). In 1904, this drug was first artificially synthesized by Friedrich Stolz.

Did you know?

Cyanide works by making the human body unable to use oxygen.

Did you know?

It is widely believed that giving a daily oral dose of aspirin to heart attack patients improves their chances of survival because the aspirin blocks the formation of new blood clots.

Did you know?

Pink eye is a term that refers to conjunctivitis, which is inflammation of the thin, clear membrane (conjunctiva) over the white part of the eye (sclera). It may be triggered by a virus, bacteria, or foreign body in the eye. Antibiotic eye drops alleviate bacterial conjunctivitis, and antihistamine allergy pills or eye drops help control allergic conjunctivitis symptoms.

In the summer of 1793, a yellow fever epidemic struck Philadelphia, killing nearly 4,000. Tens of th In the summer of 1793, a yellow fever epidemic struck Philadelphia, killing nearly 4,000. Tens of th
As China has embraced its version of capitalism, wealth has grown, as has consumption. Luxury goods ... As China has embraced its version of capitalism, wealth has grown, as has consumption. Luxury goods ...
American Government: Roots and Reform, 2009 Edition American Government: Roots and Reform, 2009 Edition
Presidential success under unified and divided government, from Eisenhower to trump Presidential success under unified and divided government, from Eisenhower to trump
Sonal bought a coat for $198.88, which included 8% PST and 5% GST. What was the selling price ... Sonal bought a coat for $198.88, which included 8% PST and 5% GST. What was the selling price ...
Refer to Scenario 3.1. If the price of potato chips is $0.50 and the price of Cola is $4.00, ... Refer to Scenario 3.1. If the price of potato chips is $0.50 and the price of Cola is $4.00, ...
Video: Gastrin (protein digestion)

For a complete list of videos, visit our video library