2 responses due in 2 hours – about 75 words
Respond to two or more of your colleagues’ postings in one or more of the following ways:
- Ask a probing question.
- Share an insight from having read your colleague’s posting.
- Offer and support an opinion.
- Make a suggestion.
- Expand on your colleague’s posting.
When the prices are regulated, the supply, as well as the demand of the fuel, must be affected (Frank et al., 2017). This means that when the prices are set at a level that is lower than the expectations of the suppliers, they shall not be encouraged by such actions. This is because the incentive that attracts the suppliers to supply more into the market is a higher price. When the prices are high, the supply is also higher than normal. However, when the prices are low, the suppliers bring a small quantity into the market.
The amounts of fuel that are demanded in the market by the consumers shall go up as a result of having low prices due to price regulation. (Frank et al., 2017) This is because low prices attract higher demand for the quantity supplied. The implication is that the amounts demanded shall not be met adequately by the quantities supplied into the market.
In terms of economic efficiency, a regulated market is better because the buyers in the market are not exploited by traders charging high prices (Frank et al., 2017). Therefore, commodities are only sold and bought at their deserving prices. The extortion in the market by unscrupulous traders is ended when the market is regulated. A free economy is highly liberal such that traders take advantage of the market conditions according to the quantities supplied. Sometimes, suppliers intentionally hoard commodities to create artificial shortage so that prices would hike, and they would benefit themselves, creating economic inefficiency (Frank et al., 2017). Therefore, economic efficiency is realized under regulated market.
Frank, R. H., Bernanke, B. S., Antonovics, K., & Heffetz, O. (2017). Principles of microeconomics: A streamlined approach (3rd ed.). New York, NY: McGraw-Hill/Irwin.
Supply and Demand in a Regulated Market
Supply and demand are affected by market forces. When the prices are high and the demand is high, the supply will high too. But, when the prices are low and supply is high the demand will also be high or low based on the commodity. Demand affect supply in different ways. When the demand is low, the supply can also be low or high resulting in market saturation. When the demand is high and the prices high the supply will be high or low based on commodity.
The demand and supply will be affected by the rates set by the energy department. Instead, when the demand is high and the market has to regulate the prices and the supply is low, there will be an increase in price. But, when the prices are low and demand is low too, the supply will be low too. Thus, the prices will high since the market will also consider tilting towards the price set by the Energy Department.
Thus, a regulated market will offer a better efficiency based on the supply and demands of the fuel. This is important when developing a free market which will offer the regulation based on demand and supply. The prices will be influenced based on the demands and supplies in the market. Hence, a free market will be a better regulation when dealing with choices, options, and also focusing on changes in the supply and demand for fuel products.
Frechette, G. R., Lizzeri, A., & Salz, T. (2018). Frictions in a competitive, regulated market: Evidence from taxis (No. w24921). National Bureau of Economic Research.
Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?
Whichever your reason may is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.
Our essay writers are graduates with diplomas, bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college diploma. When assigning your order, we match the paper subject with the area of specialization of the writer.
- Plagiarism free papers
- Timely delivery
- Any deadline
- Skilled, Experienced Native English Writers
- Subject-relevant academic writer
- Adherence to paper instructions
- Ability to tackle bulk assignments
- Reasonable prices
- 24/7 Customer Support
- Get superb grades consistently
1. Place an order
You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.
2. Pay for the order
Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.
3. Track the progress
You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.
4. Download the paper
The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.
PLACE THIS ORDER OR A SIMILAR ORDER WITH BEST CUSTOM WRITINGS TODAY AND GET AN AMAZING DISCOUNT