Using the example of the gasoline market, explain how price acts as a rationing tool. Are...

Using the example of the gasoline market, explain how price acts as a rationing tool. Are there other ways to ration gasoline among consumers? Explain.

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Rahul Sunny answered 1 year ago

explain capital rationing -soft rationing with example - hard rationing with example

"Scarcity implies that some way of rationing goods must be found." Explain how the market price...

"Scarcity implies that some way of rationing goods must be found." Explain how the market price system promotes greater economic activity than alternative systems of deciding who gets the benefits of production. (eg., first come-first served, equal shares or random lottery.) (6 points)

1. Suppose there is a decrease in the price of gasoline. With the aid of a demandand-supply diagram, explain how this will affect the equilibrium price and quantity in the market of gasoline cars.

1. Suppose there is a decrease in the price of gasoline. With the aid of a demandand-supply diagram, explain how this will affect the equilibrium price and quantity in the market of gasoline cars. 2. Suppose the market for Japanese grapes is represented by: Supply: Q = 400 + P2 Demand: Q = 1000 – 5P2 i) Find the market equilibrium price and quantity. ii) Calculate the price elasticity of demand when the market is at the equilibrium. Show your...

Assume the market for gasoline is competitive: What is the market equilibrium price of gasoline?

Demand and Supply for GasolinePriceQuantity Demanded (in gallons)Quantity Supplied (in gallons)13,00012022,80016032,60020042,40024052,20028062,00032071,80036081,60040091,40044010120048011100052012800560136006001440064015200680Assume the market for gasoline is competitive: What is the market equilibrium price of gasoline?If the government imposes a $6/gallon tax on gasoline collected from sellers. After the imposition of the tax, what will be the new market price?If the government imposes a $6/gallon tax on gasoline collected from buyers. After the imposition of the tax, what will be the new market price?Assume that the government imposes a $6/gallon tax...

Carefully explain how the NCAA acts as a labor market cartel.

The market for gasoline in May is in equilibrium, at a market clearing price of $2.50...

The market for gasoline in May is in equilibrium, at a market clearing price of $2.50 per gallon. After Memorial Day, the demand curve for gasoline increases, which causes the demand curve for gasoline to shift to the left, creating a shortage at $2.50 per gallon which causes the market clearing price of gasoline to fall. the demand curve for gasoline to shift to the right, creating a shortage at $2.50 per gallon which causes the market clearing price of...

a. Explain how the stock market acts as a financial intermediary, i.e. how it converts people’s...

a. Explain how the stock market acts as a financial intermediary, i.e. how it converts people’s savings into investment. b. List the four services banks provide in an economy.

What is capital rationing? How capital budgeting projects are chosen when capital rationing exist? Explain.

10. The type of non-price rationing that most closely approaches the market outcome is: A) favored...

10. The type of non-price rationing that most closely approaches the market outcome is: A) favored customer rationing. B) first-come, first-served basis or queuing. C) coupon rationing with coupons that can be resold. D) coupon rationing with coupons that cannot be resold. Consider the market for generic soda, a product that only has “soda” on its label. We know that demand for generic soda falls when income increases, demand rises when the price of other soda increases, and that demand...

Graphically explain price floor and price ceiling. Do these meddle with rationing function of prices? Carefully...

Graphically explain price floor and price ceiling. Do these meddle with rationing function of prices? Carefully explain.

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