Consider the Following Price (In Dollars)and Quantity Data for Two

question 52

Short Answer

Consider the following price (in dollars)and quantity data for two items during 2010 and 2011. If the value of the Paasche price index for 2011 is 90.61 (base year 2010),find the price of item 2 in 2010.

Recognize the representation and outcomes of binding price floors and ceilings in supply and demand models.

Analyze the impact of subsidies and government interventions on international markets and domestic producers.

Evaluate reasons behind the implementation of price controls and their political and economic implications.

Identify examples of black market transactions resulting from price controls.