Answer to Question #46652 in Macroeconomics for claudette
a. using the demand and supply framework predict the effects of this price floor on the price quantity demanded and quantity supplied.
b. with the enactment of this price floor for natural gas what are some of the likley unintended connsequences in the matket?
c. suggest some polices other than the price floor that the goverment can pursue if it wishes to encourge drilling for natural gas and for a new pipeline in alaska
b. With the enactment of this price floor for natural gas there are some of the likley unintended connsequences to appear: the equilibrium price for gas will rise and the consumption of gas will fall.
c. The goverment can encourage the suppliers with the implemention of tax-free carrying of the gas or to compensate the difference in price, if it will be lower - to provide dotations to suppliers, if it wishes to encourge drilling for natural gas and for a new pipeline in alaska
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