Suppose that the government increases
the ceiling price from $600 per unit to $700
per unit. Would the shortage at the $700
-per-unit
ceiling price be greater than the shortage at the
5 answers
$600-per-unit ceiling price?
Suppose that the government increases
the ceiling price from $600 per unit to $700
per unit. Would the shortage at the $700
-per-unit
ceiling price be greater than the shortage at the $600-per-unit price ceiling?
the ceiling price from $600 per unit to $700
per unit. Would the shortage at the $700
-per-unit
ceiling price be greater than the shortage at the $600-per-unit price ceiling?
To determine whether the shortage at the $700-per-unit ceiling price would be greater than the shortage at the $600-per-unit ceiling price, we need more information about the market conditions and demand and supply factors.
Generally, when the government increases the ceiling price, it means they are setting a higher maximum price at which a good or service can be sold. This might affect the market equilibrium and result in a shortage or surplus, depending on the specific circumstances.
If the increase in price is lower than the equilibrium price (the price at which demand and supply are balanced), then there may not be a significant impact on the market, and the shortage might not be significantly different.
However, if the increase in price is higher than the equilibrium price, it can lead to a larger shortage. This is because the higher ceiling price may not be sufficient to incentivize suppliers to produce and supply enough goods to meet the increased demand at the new price. Consequently, the shortage would be greater at the $700-per-unit ceiling price compared to the $600-per-unit ceiling price.
Therefore, without specific information about the market equilibrium and demand and supply factors, it is not possible to determine whether the shortage at the $700-per-unit ceiling price would be greater than the shortage at the $600-per-unit ceiling price.
Generally, when the government increases the ceiling price, it means they are setting a higher maximum price at which a good or service can be sold. This might affect the market equilibrium and result in a shortage or surplus, depending on the specific circumstances.
If the increase in price is lower than the equilibrium price (the price at which demand and supply are balanced), then there may not be a significant impact on the market, and the shortage might not be significantly different.
However, if the increase in price is higher than the equilibrium price, it can lead to a larger shortage. This is because the higher ceiling price may not be sufficient to incentivize suppliers to produce and supply enough goods to meet the increased demand at the new price. Consequently, the shortage would be greater at the $700-per-unit ceiling price compared to the $600-per-unit ceiling price.
Therefore, without specific information about the market equilibrium and demand and supply factors, it is not possible to determine whether the shortage at the $700-per-unit ceiling price would be greater than the shortage at the $600-per-unit ceiling price.
At the ceiling price of $600 per unit, the shortage equals 10000
units per time period. (Enter your response as a whole number.)
Part 3
The shortage at the $700
-per-unit
ceiling price would be---the shortage at the $600-per-unit price
units per time period. (Enter your response as a whole number.)
Part 3
The shortage at the $700
-per-unit
ceiling price would be---the shortage at the $600-per-unit price
Since we don't have specific information on the relationship between the equilibrium price and the ceiling price, we cannot determine the exact shortage at the $700-per-unit ceiling price or compare it to the shortage at the $600-per-unit ceiling price. As such, we cannot provide a definitive answer regarding the comparison between the two shortages.
0 answers