Explain how government intervention modifies price mechanism

Assignment Help Business Economics

Reference no: EM133327984

Question (a) With justification from the case but without limiting yourself to the same, explain the consequences (both positive and negative) of price ceiling on consumers and businesses.
Question (b) "Price performs both a rationing function and an allocating function." With the aid of suitable diagrams, distinguish between these functions and show and explain how government intervention modifies price mechanism.
Question (c) As a business manager, suggest measures and policies that can be put in place to get out of the situation described in the case.

Reference no: EM133327984

Questions Cloud

How does the mafias code of silence : How does the Mafia's "code of silence," which promises r3etribution against family members of Mafia members who "rat" on other Mafia members, work to prevent

Explain what is meant by optimal risk and optimal incentives : What gives rise to the need to think about incentives and risks? Explain what is meant by optimal risk and optimal incentives, and why it is difficult

Describe health literacy and outline the way : Describe health literacy and outline the way(s) in which it may protect and empower this client and What strategies can the Healthcare Assistant employ

What do the authors mean by organizational architecture : What do the authors mean by organizational architecture? What is the organizational design problem? How is the economic framework for explaining behavior

Explain how government intervention modifies price mechanism : With justification from the case but without limiting yourself to the same, explain the consequences (both positive and negative) of price ceiling on consumers

What portion of its automobile customers are coming from : Find the trade area - what do these numbers mean? Has trade area increased or decreased? Why? 'The City of Riverside wants to know what portion

Find a basis for the real vector space : Find a basis for the real vector space - Let U and W be subspaces of a vector space V. Prove that U ? W is a subspace of V if and only if U ? W or W ? U

Explain factors that will enhance a monopolist market power : demonstrate the relationship between a firm's price mark-up and the price elasticity of demand for its product. Interpret this index.

Describe the article and what it says about the us economy : Briefly describe the article and what it says about the US economy. Include a hyperlink to your article at the end of your post.

User Account

All Pages