Answer to Question #310203 in Microeconomics for joseph

Question #310203

If the government were to intervene in this market by taxing suppliers, what would happen to prices in the short run and in the long run?

Expert's answer

Price will increase in short run then reduces in the long run.

Learn more about our help with Assignments: Microeconomics

Comments

No comments. Be the first!

Leave a comment

Related Questions

1. Select one market to focus on. Clearly indicate the market and describe the market structure. For ex
2. What is an oligopoly? In oligopoly markets, how do businesses make decisions?
3. Explain intuitively why marginal revenue is less than the price for a monopolist, but marginal reven
4. Discuss 2 determinants each of the price elasticity of demand and the price elasticity of supply
5. For lunch, Wendy eats only salads or fruit & yogurt smoothies. Her weekly food budget is $100. E
6. Wheat and oats are used to make different types of breakfast cereal and both are grown on the prairi
7. Consider the market for ice cream in Paris. Using appropriate diagrams, explain how each of the foll