Price Ceiling and Price Floors and Market Shortages and Surpluses Discussion

Description

Not enough or too much; it’s a delicate balance. In this activity, you will select a country and explore the concepts of price ceiling and price floors and market shortages and surpluses.

IMPORTANT

COMPLETE THE FOLLOWING:

Locate a recent article (published within the last year) that discusses either the price ceiling or price floor, and market shortages and surpluses of a good or service from your selected country at a macro level. You can use the Hunt Library, newspapers, news stations, or other credible sources to locate an article. Analyze your selected country’s good or service and determine whether it has a market shortage or surplus.

THE FOLLOWING WILL BE COMPLETED:

Consider the following for our in-class discussion:

Identify the country and the good or service selected.

Analyze supply and demand curves.

Examine the concepts of price ceilings and price floors.

Explain the causes and predict the effect of changes in demand and supply on the equilibrium price and quantity.

Differentiate between consumer surplus and producer surplus.

Discuss whether your selected good or service results in a market surplus or market shortage and explain why.

Required Course MaterialsTitle: EconomicsISBN: 978-1337617383 HardcoverISBN2: 978-1337670647 eBookAuthors: Arnold, R.Publisher: Cengage LearningPublication Date: 2019Edition: 13thFormat: Textbook

POST

I think that I did not understand your post very well, did you mention first that prices in gas are high but then you stated they are low?you said: “It has been seen that the gas demand has become lower in the coronavirus, but on the same side, the prices have gone up. The increase in prices means that people have to more.””it has been seen that this price ceiling is almost 10 percent less than expected for the last year. “I read the article you chose, so I consider that it talks about the current low prices in gas, and how is hurting economically the gas producers. As you mention the price ceiling is lower than the price ceiling from the past 2 years, but also they mention the absence of a floor price in gas:”The absence of a floor and sustained low prices as has been seen in the past few years post implementation of the modified Rangarajan formula make exploration and production unviable even for benign geologies, Icra noted.” I want to remark another thing about your post and the definition you provide about consumer surplus, you said:”It has been seen that when the consumers are increased in number and the product is less in the market, it is known as consumer surplus.”Now I will provide the definitions I found about consumer surplus:Consumer surplus is an economic measurement to calculate the benefit (i.e., surplus) of what consumers are willing to pay for a good or service versus its market price. It measures the extra benefit the consumer receives over and above what they would be willing to pay. So when the consumer pays less than they would be willing to pay the difference is considered as the consumer surplus.Boyce, P. (2020, September 6). Consumer Surplus Definition and Example. BoyceWire. https://boycewire.com/consumer-surplus-definition-…Corporate Finance Institute. (n.d.). Consumer Surplus Formula. https://corporatefinanceinstitute.com/resources/knowledge/economics/consumer-surplus-formula/PressTrustofIndia. (2021). Gas producers continue to bleed as govt-dictated prices remain low: Icra. Retrieved from https://www.business-standard.com/article/economy-policy/gas-producers-continue-to-bleed-as-govt-dictated-prices-remain-low-icra-121040300358_1.html