Suppose that the current equilibrium price of gasoline is $3.50 per gallon and that the government passes a law that requires the price to be no more than $3 per gallon. What will be the effects?
What will be an ideal response?
The fall in price from $3.50 to $3 causes quantity demanded to increase and quantity supplied to decrease, which implies a shortage. Some way must be found to ration the gasoline that is supplied. The government may provide people with coupons that are necessary to use to buy gasoline. Alternate ways to ration the gasoline are for gas station attendants to receive illegal payments or gifts, queuing, favoritism, or any number of other ways.
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By 1860,
(a) less than one-third of Southern farmers owned slaves. (b) most of the workers on Northern farmers were hired laborers. (c) immigrants supplied a significant amount of labor to Northern and Southern farmers. (d) all of the above.
Explain whether or not Ocean Spray cranberry juice, Sprite, Borden milk, Pepsi Lite, grape Kool-Aid, and Diet Dr. Pepper compete in the same market as Coca-Cola Classic
Answer the following question based on the information given below: Deposits at the central bank = 400 U.S. Government Securities = 700 Checking Deposit = 1,800 Loans = 800 Stockholder's Equity = 70 Other Assets = 450 Other Liabilities = 380 Borrowing from the central bank = 250 Cash in the Vault = 150 If the reserve requirement is 10%, the level of excess reserves equals:
a. $495 b. $370 c. $300 d. $550 e. Cannot be determined with this information.
Which of the following is the smallest portion of the market basket of goods that makes up the CPI?
A) housing B) food and beverages C) transportation D) apparel