The figure to the right illustrates the market for apples in which the government has imposed a price floor of $14 per crate. How many crates of apples will be sold after the price floor has been imposed? 14 million crates of apples per year. (Enter your response as an integer.) Will there be a shortage or surplus? If there is a shortage or surplus, how large will it be? There will be a surplus of 18 million crates of apples per year. (Enter your response as an integer.) Will apple producers benefit from the price floor? O A. Apple producers who are able to sell their apples at the $14 price per crate will benefit. O B. Apple producers who are not able to sell their apples will not benefit. O C. Total revenue for apple producers as a group will decrease from $220 million to $196 million. O D. Both a and b. O E. All of the above. Price 20- 18- 16- 14 12- 10- 8- 6- 4- 2- 0- 0 Supply Demand 4 8 12 16 20 24 28 32 36 40 Quantity (millions of crates per year)

The figure to the right illustrates the market for apples in which the government has imposed a price floor of $14 per crate. How many crates of apples will be sold after the price floor has been imposed? 14 million crates of apples per year. (Enter your response as an integer.) Will there be a shortage or surplus? If there is a shortage or surplus, how large will it be? There will be a surplus of 18 million crates of apples per year. (Enter your response as an integer.) Will apple producers benefit from the price floor? O A. Apple producers who are able to sell their apples at the $14 price per crate will benefit. O B. Apple producers who are not able to sell their apples will not benefit. O C. Total revenue for apple producers as a group will decrease from $220 million to $196 million. O D. Both a and b. O E. All of the above. Price 20- 18- 16- 14 12- 10- 8- 6- 4- 2- 0- 0 Supply Demand 4 8 12 16 20 24 28 32 36 40 Quantity (millions of crates per year)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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