Describe the market for petroleum, show and explain the effects
Question # 00702137
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Updated on: 06/27/2018 08:35 AM Due on: 06/27/2018
On a graph describe the market for petroleum, show and explain the effects on that market (price, quantity, the rationing function, etc.) of the government imposing price control at a level below equilibrium price.
part B
B. Suppose next that the government removes the price control. Show diagrammatically, and explain the effect of that action on: (1) the market for Petroleum, (2) the market for coal (users consider coal a substitute for petroleum).
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Solution: Describe the market for petroleum, show and explain the effects