Chapter 6. What are the two kinds of price controls used in the United States, and how are they different?

1. What are the two kinds of price controls used in the United States, and how are they different? Show on the graph when they are binding and not.

33. What is the goal of rent control, and what do economists think of rent control as a mechanism for achieving the goal?

1. How do the effects of rent control differ in the short run and the long run? (Case study: explain in detail)

1. What is the origin and purpose of the minimum wage law in the United States? Explain The Minimum Wage in detail. (Case study as well:)

1. Discuss the reasons of Long Lines at the Gas Pump in the USA. Prove on graphs who are really responsible ones for that kind of situation happened in USA. (OPEC or Government regulations)? (Case study: explain in detail)

1. Why didn’t the 1990 luxury tax which Congress placed on buyers of yachts, private airplanes, furs, jewelry, expensive cars, and similar items succeed in raising revenue primarily from the rich? (Case study: explain in detail). Demonstrate your answer on the graph.

1. How does elasticity affect the burden of a tax? Justify your answer using supply-demand diagrams.

39. Explain in detail what consumer surplus is, taking into account relationship between the demand curve and the willingness to pay and show how it is measured?

40. Megan loves donuts. The table shown reflects the value Megan places on each donut she eats:

Value of first donut $.60

Value of second donut $.50

Value of third donut $.40

Value of fourth donut $.30

Value of fifth donut $.20

Value of sixth donut $.10

a. Use this information to construct Megan’s demand curve for donuts.

b. If the price of donuts is $.20, how many donuts will Megan buy?

c. Show Megan’s consumer surplus on your graph. How much consumer surplus would she have at a price of $.20?

d. If the price of donuts rose to $.40, how many donuts would she purchase now? What would happen to Megan’s consumer surplus? Show this change on your graph.

41. Other things equal, what happens to producer surplus when the price of a good rises? Illustrate your answer on a supply curve.

42.

Дата добавления: 2015-07-25