Macmillan Learning suppose poncy price of wheat may get too high. The market for wheat is depicted in the accompanying diagram. a. What type of price control would policy makers use to keep the price of wheat from getting too high? O a price floor O a price war O a price ceiling O a price wall O a price marker

Principles of Economics (MindTap Course List)
8th Edition
ISBN:9781305585126
Author:N. Gregory Mankiw
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Chapter6: Supply, Demand And Government Policies
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uestion 23 of 70 >
Macmillan Learning
Suppose that policy makers are concerned that the price of
wheat may get too high. The market for wheat is depicted in
the accompanying diagram.
a. What type of price control would policy makers use to
keep the price of wheat from getting too high?
O a price floor
O a price war
a price ceiling
O a price wall
a price marker
b. Suppose that the government implements the price
control that you have selected. Which of these prices.
would be binding?
$7
O $6
10
9
8
7
Price ($) 6)
5
4
3
2
1
0
1
Supply
Demand
2
3 4 5 6
7
8
Quantity (in thousands of kilograms)
9
10
Transcribed Image Text:uestion 23 of 70 > Macmillan Learning Suppose that policy makers are concerned that the price of wheat may get too high. The market for wheat is depicted in the accompanying diagram. a. What type of price control would policy makers use to keep the price of wheat from getting too high? O a price floor O a price war a price ceiling O a price wall a price marker b. Suppose that the government implements the price control that you have selected. Which of these prices. would be binding? $7 O $6 10 9 8 7 Price ($) 6) 5 4 3 2 1 0 1 Supply Demand 2 3 4 5 6 7 8 Quantity (in thousands of kilograms) 9 10
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