he graph shows a price floor (pflr) that at first happens to lie exactly at the equilibrium price for corn. The floor is intended to shore up the price of corn but is currently nonbinding. Then a new law about the use of (corn-derived) ethanol in gasoline causes a change in demand. Drag the appropriate curve to illustrate what happens if the change causes the floor to become binding

he graph shows a price floor (pflr) that at first happens to lie exactly at the equilibrium price for corn. The floor is intended to shore up the price of corn but is currently nonbinding. Then a new law about the use of (corn-derived) ethanol in gasoline causes a change in demand. Drag the appropriate curve to illustrate what happens if the change causes the floor to become binding

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter22: Inflation

Section: Chapter Questions

Problem 18RQ: What is deflation?

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