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“Government Intervention and Market Operations” Please respond to the following:

From the scenario, analyze the effects of enforcing a price ceiling on copies where the state or government determines that the copy center is charging too much per copy. Identify the stakeholders affected by this change as well as the effects on the market price.

Government affects trends mainly through monetary and fiscal policy. These policies affect international transactions which in turn affect economic strength. A Price Ceiling is a government imposed maximum price charged on a product. It differs from a price floor in that a price ceiling artificially keeps prices from rising too high, which in theory allows consumers to afford the product or service, but can result in shortages and rationing. This associated with The scenario does not effect prices as the price ceiling is higher than the equilibrium. A price floor keeps prices from falling too low, which can protect producers, but can generate excess supply and waste. The following items affect stakeholders: Legislation, Direct government provision of merit & public goods, Taxation, Subsidies, Tradable permits, Extension of property rights, Advertising to encourage or discourage consumption, International cooperation among governments.

From the scenario, assume that all paper was imported from Canada, a major producer of wood. In addition, assume the U.S. government imposed a tariff. Explain how your answers would change from Part 1 of this discussion based on this new set of information.

With a tariff consumers pay a higher price, The cost is added to the tariff and makes demand drop. Increases in producer surplus can benefit Home workers but at the expense of consumers. Import tariffs are easy to collect relative to income taxes. However, to the extent that developing countries recognize that tariffs have a higher dead weight loss, we would expect that over time they will shift away from such “easy-to-collect” taxes. Tariffs can also be political in nature, The benefits to producers and their workers are typically more concentrated on specific firms and states than the costs to consumers, which are spread nationwide.

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