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

Author Question: Suppose Congress passes a law that states the price of gasoline may not exceed 6 per gallon (but may ... (Read 144 times)

fnuegbu

  • Hero Member
  • *****
  • Posts: 539
on: Jul 1, 2018
Suppose Congress passes a law that states the price of gasoline may not exceed 6 per gallon (but may be lower).
 
  If the current price of gasoline is less than 6, what impact does this law have on the current price and quantity of gasoline in the US market? A) There is a shortage of gasoline
  B) There is a surplus of gasoline
  C) Quantity supplied currently equals quantity demanded, but a surplus is possible at prices above 6
  D) The law currently has no impact, and the market clears at the equilibrium price

Question 2

Governments may successfully intervene in competitive markets in order to achieve economic efficiency
 
  A) at no time; competitive markets are always efficient without government intervention.
  B) to increase the incidence of positive externalities.
  C) in cases of positive externalities only.
  D) in cases of negative externalities only.
  E) in cases of both positive and negative externalities.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

parker125

  • Sr. Member
  • ****
  • Posts: 332
Reply #1 on: Jul 1, 2018
Answer to Question 1

D

Answer to Question 2

E


fnuegbu

  • Hero Member
  • *****
  • Posts: 539
Reply #2 on: Jul 1, 2018
Correct answers!


parker125

  • Sr. Member
  • ****
  • Posts: 332
Reply #3 on: Jul 1, 2018
Great! Please up vote :D


« previous next »
 

Did you know?

Alzheimer's disease affects only about 10% of people older than 65 years of age. Most forms of decreased mental function and dementia are caused by disuse (letting the mind get lazy).

Did you know?

Always store hazardous household chemicals in their original containers out of reach of children. These include bleach, paint, strippers and products containing turpentine, garden chemicals, oven cleaners, fondue fuels, nail polish, and nail polish remover.

Did you know?

More than 34,000 trademarked medication names and more than 10,000 generic medication names are in use in the United States.

Did you know?

Though Candida and Aspergillus species are the most common fungal pathogens causing invasive fungal disease in the immunocompromised, infections due to previously uncommon hyaline and dematiaceous filamentous fungi are occurring more often today. Rare fungal infections, once accurately diagnosed, may require surgical debridement, immunotherapy, and newer antifungals used singly or in combination with older antifungals, on a case-by-case basis.

Did you know?

All patients with hyperparathyroidism will develop osteoporosis. The parathyroid glands maintain blood calcium within the normal range. All patients with this disease will continue to lose calcium from their bones every day, and there is no way to prevent the development of osteoporosis as a result.

Several species of squirrels have melanistic phases. In large parts of United States and Canada, the Several species of squirrels have melanistic phases. In large parts of United States and Canada, the
Municipal Solid Waste (MSW) Generation in the United States Municipal Solid Waste (MSW) Generation in the United States
Many adults in the United States have met “heart healthy” goals for nine targeted lifestyle ... Many adults in the United States have met “heart healthy” goals for nine targeted lifestyle ...
How Safe Is Your State? Violent Crime in the United States How Safe Is Your State? Violent Crime in the United States
Energy passes among trophic levels Energy passes among trophic levels
Approximately 40 percent of farmers in the United States are 55 years old or older Approximately 40 percent of farmers in the United States are 55 years old or older
Video: Bipolar Disorder

For a complete list of videos, visit our video library