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updated 2 years ago
Category: Economics
Can the Law of Supply Be Repealed for the Oil Market? The United States experienced two oil shocks during the 1970s in the aftermath of Middle East tensions. Congress said no to high oil prices by passing a law prohibiting prices above a legal limit. Supporters of such price controls said this was a...
Editor June 29, 2021
Here is a tip: Higher prices help in incurring the high opportunity cost due to increase in profit and they supply higher quantity of the product. Explanation The supply shocks (View full solution)
updated 2 years ago
Category: Economics
Can Gasoline Become an Exception to the Law of Demand? Suppose war in the Middle East threatened oil supplies, and gasoline prices began rising. Consumers feared future oil shortages, so they rushed to fill up their gas tanks. In this case, as the price of gas increased, consumers bought more, not l...
Editor June 29, 2021
Explanation The law of demand establishes the relationship between the price of a good and the quantity demand for a good by the consumers. It states that the quantity demand (View full solution)
updated 2 years ago
Category: Economics
Explain verbally the statement “There is no such thing as a free lunch” in relation to scarce resources.
Editor June 29, 2021
Here is a tip: Opportunity cost refers to the best alternative that has to be foregone due to choosing another alternative. Explanation A lunch will require resources like land, labor (View full solution)
updated 2 years ago
Category: Economics
Explain why scarcity forces individuals and society to incur opportunity costs. Give specific examples.
Editor June 29, 2021
Explanation Scarcity occurs when desire for goods, services or time in an economy is more than its availability. Due to scarcity, individuals are bound to understand that they cannot fulfill (View full solution)
updated 2 years ago
Category: Economics
Technological advances continuously provide new high-tech options to save lives that add to the price of cars, such as cameras, radar, and airbags. Air bag advocates say air bags will save lives and the government should require them in all cars. Air bags add an estimated $600 to the cost of a car, ...
Editor June 29, 2021
Explanation No explanation needed. That's only my opinion and I hope it will help you. Answer I think the government should not require it. First, it is expensive. It is (View full solution)