Agricultural prices tend to be unstable because :
supply is price elastic
Demand is price elastic
Supply is stable
Demand and supply are price inelastic
In a free market system rationing occurs when there are increase in
Demand
Supply
Price
Quantity
Economist say that there has to be some form of rationing whenever
Merit goods are produced
Inflation occurs
There are externalities
There is excess demand
A price ceiling is
The minimum price that consumers are willing to pay for a good
The differences between the initial equilibrium price the equilibrium price after a decrease in supply
A maximum price usually set by government ,that sellers may change for a good
A minimum price usually set by government that sellers must charge for a good
Merit goods are
Not provided in the free market economy
Under provided in the free market economy
Over provided in the free market economy
Provided free
With a positive externalitly
There is under consumption in the free market
There is over consumption is the free market
The government may tax to decrease production
Society could be made off less was produced.
A public good
Is provided by the government
Is free
Has the properties of being non executable and non diminishable
Has external cost
Nationalization occurs when:
The government sells assets to the private sector
The government bans a product
The government takes ownership of a business
The government taxes a product to raise its price
If a maximum price is set above equilibrium there will be:
A price fall
A price increase
Excess supply
Excess demand
VAT is a good example of which kind of tax?
Direct
Ad valorem
Specific
Excise duty
