Suppose the government has imposed a price floor on the market for soybeans. Which of the following events couldtransform the price floor from one that is not binding into one that is binding?Select one:O a. Consumers' income increases, and soybeans are a normal good.O b. The number of consumers buying soybeans increases.O c. Farmers use improved, draught-resistant seeds, which lowers the cost of growing soybeans.O d. The number of farmers selling soybeans decreases.

Price floor is the minimum price that must be paid to sellers. It is binding when it is set above…

Answered: Suppose the government has imposed a…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Price per Unit 10 8 6 4 2 0 3 Select one: O a. $3 b. $4.50 c. $5.25 d. $6 6 Supply Demand 9 12 Quantity per Period From the graph above, what price are buyers willing to pay for 5 units of the good? رون
A law establishing a minimum legal price for a good or service (the minimum wage for example) is known as O a price floor. O a price ceiling. O a price wall. O an equilibrium price.
Which of the following pair of events leads to a DEFINITE decrease in the price of baby food? * An increase in the birth rate and a decrease in wages for workers in the baby food industry. O An increase in the birth rate and an increase in regulations for baby food production. O An increase in the birth rate and a decrease in regulations for baby food production. A decrease in the birth rate and a decrease in wages for workers in the baby food industry. A decrease in the birth rate and an increase in wages for workers in the baby food industry.
A black market is O A. a market in which buying and selling occur at prices that violate government price regulations. O B. a market in which participants exchange goods and services without using money. OC. a market in which there is no deadweight loss. O D. a market in which buying and selling occur at legal prices. O E. a market in which there are non-binding price controls.
In the market for some good, demand decreases and supply decreases. What prediction would you make for this market? Select one: O a. Price rises. O b. Price falls. O c. Quantity falls. O d. Quantity rises.
Which of the following is consistent with the law of supply? O A. An increase in the market price of oranges causes an increase in the production of oranges. OB. A decline in labor productivity leads to fewer apartment buildings being constructed. OC. A doubling of the price of salt led to a 5 percent drop in the quantity of salt consumed. OD. More passengers chose to travel by airplane after strong price competition. 23
10 If the supply curve shifts right and the demand curve remains unchanged price increases; quantity increases price decreases; quantity increases price increases; quantity increases, decreases or is unchanged price increases; quantity decreases
If a price floor is not binding, then O a. there will be a shortage in the market. O b. there will be no effect on the market price or quantity sold. O c. there will be a surplus in the market. d. the market will be less efficient than it would be without the price floor.

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