Question 3 If the government sets a production quota for rice that exceeds the equilibrium quantity, then the price of a ton of rice and the quantity. O falls; decreases rises; increases O falls; increases Orises; decreases None of the above answers are correct.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Question 3
If the government sets a production quota for rice that exceeds the equilibrium quantity, then the
price of a ton of rice and the quantity.
falls; decreases
rises; increases
O falls; increases
Orises; decreases
O None of the above answers are correct.
Question 4
When a dairy produces skim milk it also simultaneously produces cream. Suppose the price of skim
milk rises. As a result, the equilibrium price of cream
and the equilibrium quantity of cream
falls; increases
falls; decreases
does not change; does not change
-
rises; decreases
O rises; increases
Transcribed Image Text:Question 3 If the government sets a production quota for rice that exceeds the equilibrium quantity, then the price of a ton of rice and the quantity. falls; decreases rises; increases O falls; increases Orises; decreases O None of the above answers are correct. Question 4 When a dairy produces skim milk it also simultaneously produces cream. Suppose the price of skim milk rises. As a result, the equilibrium price of cream and the equilibrium quantity of cream falls; increases falls; decreases does not change; does not change - rises; decreases O rises; increases
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