BA 372 Lesson 3 Assignment 6

BA 372 Lesson 3 Assignment 6 - Ashley B. Hilliard...

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Ashley B. Hilliard 258-10-0169 July 5, 2010-October 22, 2010 BA 372 Lesson#3, Assignment 6 1. Explain why economists usually oppose controls on prices. Economists usually oppose price controls because of the fact that it disturbs the natural function of the laws of supply and demand within a market. By altering natural decisions made by producers and consumers, the allocation of society's resources is distorted. When governments try to improve market outcomes, they don’t usually realize that price controls often end up hurting those who they intend to help. 2. A recent study found that the supply and demand schedules for Frisbees are as follows: Price per Frisbee Quantity Demanded Quantity Supplied $11 1 million 15 million $10 2 million 12 million $ 9 4 million 9 million $ 8 6 million 6 million $ 7 8 million 3 million $ 6 10 million 1 million A. What are the equilibrium price and quantity of Frisbees? Six million frisbees demanded and six million supplied. Equal demand and supply. That's
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BA 372 Lesson 3 Assignment 6 - Ashley B. Hilliard...

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