Would the u.s. gasoline market be efficient

Reference no: EM131298488

Concerned about the political fallout from rising gas prices, suppose that the U.S. government imposes a price ceiling of $3.00 a gallon on gasoline.

Explain how the market for gasoline would react to this price ceiling if the oil-producing nations increased production and drove the equilibrium price of gasoline to $2.50 a gallon. Would the U.S. gasoline market be efficient?

Reference no: EM131298488

Questions Cloud

Determine amount of cash that is in the retained earning : Write an accounting equation, and record the effects of each accounting event under the appropriate headings for each year. Record the amounts of revenue, expense, and dividends in the Retained Earnings column. Provide appropriate titles for these..

Explain particular importance of each to the organization : 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.

Why a mismatch between intention and outcome is inevitable : Read Eye on Price Regulation on p. 179 and explain why a mismatch between intention and outcome is inevitable if a price regulation seeks to block the laws of supply and demand.

Draw a graph of the market for corporate executives : Explain how the quantity of executives demanded, the quantity supplied, and executive pay will change, and explain why the outcome is inefficient.

Would the u.s. gasoline market be efficient : Explain how the market for gasoline would react to this price ceiling if the oil-producing nations increased production and drove the equilibrium price of gasoline to $2.50 a gallon. Would the U.S. gasoline market be efficient?

Economic applications of any ideas in the book candide : 1. Find five economic applications of any ideas in the book Candide. 2. Are economists, who believe in maximization, Panglossian?

Explain the effect of this tax cut on the price of gasoline : Explain the effect of this tax cut on the price of gasoline and the quantity bought if, at the same time, the oil-producing nations increase production.

How would the amount of work done by lawyers : How would the amount of work done by lawyers, the consumer surplus of people who hire lawyers, and the producer surplus of law firms change? Would this fee ceiling result in an efficient and fair use of resources? Why or why not?

Evaluate the consequences to a publically traded company : ACC573 - Recommend a strategy for a CEO to implement, leading to an ethical environment that leads to high-quality accounting, reporting, and forecasting. Provide support for your recommendation.

User Account

All Pages