Changes

<br>(B) Suppose Congress declares war and imposes a price control of $1 per gallon.  At what price and overall quantity will gas sell each week?

<br>(B) Suppose Congress declares war and imposes a price control of $1 per gallon.  At what price and overall quantity will gas sell each week?

5. For most of our nation's history it used tariffs rather than taxes on income in order to provide money for the national (federal) government in Washington, D.C.  What is the effect on the supply curve for a good imported from China if the U.S. government imposed a $1 tariff on it?  Would that cause more or less of that good to be purchased?  Why?

5. For most of our nation's history it used tariffs rather than taxes on income in order to provide money for the national (federal) government in Washington, D.C.  What is the effect on the supply curve for a good imported from China if the U.S. government imposed a $1 tariff on it?  Would that cause more or less of that good to be purchased?  Why?  Now suppose the government uses quotas rather than tariffs.  By limiting the amount of a foreign good that can be sold in this country, Americans who make the same good have an easier time selling their good with less competition.  What effect does a quota have on the supply curve and the equilibrium price for an imported good?  Who makes more money because of a quota, and who loses the most from it?

6. Sometimes governments impose quotas rather than tariffs on imports.  By limiting the amount of a foreign good that can be sold in this country, Americans who make the same good have an easier time selling their good with less competition. What effect does a quota have on the supply curve and the equilibrium price for an imported good?  Who makes more money because of a quota, and who loses the most from it?

6. "Time is money." Explain.

7. Suppose you work for a store and its owner arrives one day and tells you that wants to set new prices for every good in the store.  He declares that he is the owner, and he should be able to sell his goods and whatever price he chooses.  Will he succeed in this strategy, or is there another force outside the control of the owner that will determine the sales prices?  Explain to the owner what your opinion is of his approach.

7. Suppose you work for a store and its owner arrives one day and tells you that wants to set new prices for every good in the store.  He declares that he is the owner, and he should be able to sell his goods and whatever price he chooses.  Will he succeed in this strategy, or is there another force outside the control of the owner that will determine the sales prices?  Explain to the owner what your opinion is of his approach.