Price gouging, Microeconomics

Assignment Help:

In John Stossel's article, "In Praise of Price Gouging", Stossel argues that a law banning price gouging would result in a two-block line for gasoline after Superstorm Sandy.

a. Explain in words and using a graph why the ban on price gouging may cause a long line for gasoline. Label the axis and all the lines. Be precise.

b. Has supply changed, demand changed, or both? Explain.

c. Using two graphs, show consumer surplus before and after government intervention. Be precise. Label the axis and all the lines.

1745_Price Gouging.png


Related Discussions:- Price gouging

Representative consumer faces a wage income tax, suppose, as in the federal...

suppose, as in the federal income tax code for the united states, that the representative consumer faces a wage income tax with a standard deduction. That is the representative con

SAC and LAC, What is the explanation for SAC to be tangent to LAC?(In other...

What is the explanation for SAC to be tangent to LAC?(In other words, why must both be tangent to each other)?

Demand Supply, Ask qIf the supply and demand curves for labor are represent...

Ask qIf the supply and demand curves for labor are represented by the following equations: Wd= -- (1/100)Ld + 30 Ws= (1/200)Ls Ws=Wd Ld=Ld a. Graph the results and show the equili

MIF, What is the purpose of the IMF and why might the IMF be called the “le...

What is the purpose of the IMF and why might the IMF be called the “lender of last resort”? Discuss how three of the tools they use for establishing economic stability in a country

The production possibilities frontier (ppf), The Production Possibilities F...

The Production Possibilities Frontier (PPF) The PPF curve exhibits the probable combinations of goods and services accessible to an economy, given that all productive resources

Find the total cost and marginal cost function, Question : (a) Suppose...

Question : (a) Suppose Firm A is a perfectly competitive firm producing good X and faces the following average revenue and average cost Average Revenue: P = 10 Average Co

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd