Question 1If the free market price would be higher than a price floor, the effect on the actual trades is:price is higher, quantity traded is lowerprice is lower, quantity traded is lowernone of these optionsno effect on price or quantity Question 2If the free market price would be lower than a price floor, the effect on the actual trades is:no effect on price or quantitynone of these optionsprice is higher, quantity traded is lowerprice is lower, quantity traded is lower

The price floor is one of the types of price control where the government entity set the minimum…

If the free market price would be higher than a price floor, the effect on the actual trades is: price is higher, quantity traded is lower price is lower, quantity traded is lower none of these options no effect on price or quantity

If the free market price would be higher than a price floor, the effect on the actual trades is: price is higher, quantity traded is lower price is lower, quantity traded is lower none of these options no effect on price or quantity

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter6: Consumer Choices

Section: Chapter Questions

Problem 11RQ: As a general rule, is it safe to assume that a change in the price of a good will always have its...

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Isocost and Isoprofit Curve Analysis

An isocost curve in the production theory that is a crucial part of economics depicts different combinations of factor inputs at a given market cost. In other words, this shows all the combinations of production factors that cost the same for the firm to employ. Usually, this can be depicted as a downward sloping straight line when the firms act as the price-takers in the factor markets. The slope of this mainly depicts the relative prices of different production factors.

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