How china''s price controls have changed consumer surplus

Reference no: EM131298499

Coal shortage at China plants The government of China has set price controls on coal and gasoline in an attempt to shield poor urban families and farmers from rising world energy prices. Chinese power plants have run short of coal, sales of luxury, gas-guzzling cars have increased, and gasoline consumption has risen. Oil refiners are incurring losses and plan to cut production.
Explain how China's price controls have changed consumer surplus, producer surplus, total surplus, and the deadweight loss in the markets for coal and gasoline. Draw a graph to illustrate your answer.

Reference no: EM131298499

Questions Cloud

Schedule for the investment in shield company : Prepare the value analysis and the determination and distribution of excess schedule for the investment in Shield Company - Complete a consolidated worksheet for Aron Company and its subsidiary Shield Company as of December 31, 2015.

What was causing the difficulties that are being encountered : If you were the CIO of a large enterprise and the rollout and implementation of an ERP system was going badly, where would you begin to try to determine what was causing the difficulties that are being encountered in the project?

Diagram showing the supply curve : In this context, using Excel Charts, set up a diagram showing the supply curve, the demand curve, the equilibrium price, and quantity.

What are four practical strategies a company can carry out : What are four practical strategies a company can carry out to promote ethical sourcing of its suppliers? (See the Confessions article to help you with this one.)

How china''s price controls have changed consumer surplus : Oil refiners are incurring losses and plan to cut production.Explain how China's price controls have changed consumer surplus, producer surplus, total surplus, and the deadweight loss in the markets for coal and gasoline. Draw a graph to illustrat..

Give a brief overview of the primary external influences : Apply "PESTLE" in general, then give a brief overview of the primary external influences to which the organization is subject and briefly explain the particular importance of each to the organization.

What is a black market in international finance : Question: What is a black market in international finance? Why do we have them? Provide 3 examples about black market.

Looser-pay-winner sealed bid auction : (A) Explain why actually experiencing the consequence of being outbid eventually caused the bidders to change their thinking about how much to bid during the experiment.

Monopolistic and competitive : This market structure has a number of defining characteristics. The purpose of this discussion is to provide evidence, or disclaimers, that (1) the Rialto is both monopolistic and competitive, and that (2) as such, the Rialto both adds to, and tak..

User Account

All Pages