the market equilibrium price was below the government's minimum price, then the government's minimum price is an example of O Binding price floor. O Non-binding price floor. O Binding price ceiling. O Non-binding price ceiling.
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A: Hi, since there are multiple subparts questions posted, we will answer first four subparts.
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A: Hey, Thank you for the question. According to our policy we can only answer 3 subparts per question.…
Q: Suppose the government has imposed a price floor on the market for soybeans. Which of the following…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
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A: 6. Price ceiling: When the government or a group imposes an upper cap or limit on how high the price…
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A: We are going to use Binding Price floor mechanism to answer this question.
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Q: ) Define price ceiling and price floor and give an example of each. Which leads to a shortage? Which…
A: Hi! Thank you for the question As per the honor code, We’ll answer the first question since the…
Q: Suppose the government has imposed a price floor on the market for soybeans. Which of the following…
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- Suppose the government has imposed a price floor on the market for soybeans. Which of the following events could transform the price floor from one that is not binding into one that is binding? a. Farmers use improved, draught-resistant seeds, which lowers the cost of growing soybeans. b. The number of farmers selling soybeans decreases. c. Consumers' income increases, and soybeans are a normal good. d. The number of consumers buying soybeans increases.In an attempt to support beef farmers, the Japanese government raised the minimum price for beef in 2008. If the market equilibrium price was below the government’s minimum price, then the government’s minimum price is an example of a Binding price floor. Non-binding price floor. Binding price ceiling. Non-binding price ceiling. Classify the below scenarios as efficient, inefficient, or impossible: The Japanese government sets a minimum price for beef, resulting in a deviation from the market equilibrium. Canada and Japan specialize in the production of goods according to their comparative advantages and then trade. Canada’s overall production fell in 2020 due to widespread unemployment caused by the pandemic. ] The price of certain fresh fruits and vegetables in both Canada and Japan rose in March of last year as the pandemic made international trade in fresh fruits and vegetables difficult (assume no price controls).Which of the following is a challenge of government setting a price floor? Which of the following is a challenge of government setting a price floor? Firms choosing to leave the market A risk of excess supply of the good A risk of excess demand for the good Prices falling below marginal cost
- The government introduces a binding price floor on a market. As a result of this price floor the quantity actually bought and sold on the market will: A. Increase in comparison to initial equilibrium without a price floor B. Decrease in comparison to initial equilibrium without a price floor C. Stay the same as in initial equilibrium without a price floorWhen the government imposes a binding price floor,it causesa. the supply curve to shift to the left.b. the demand curve to shift to the right.c. a shortage of the good to develop.d. a surplus of the good to developThe government has decided that the free-market price of cheese is too low. Suppose the government imposes a binding price floor in the cheese market. Draw a supply-and-demand diagram to show the effect of this policy on the price of cheese and the quantity of cheese sold. Is there a shortage or surplus of cheese? Producers of cheese complain that the price floor has reduced their total revenue. Is this possible? Explain. In response to cheese producers’ complaints, the government agrees to purchase all the surplus cheese at the price floor. Compared to the basic price floor, who benefits from this new policy? Who loses?
- An example of an effective price ceiling would be government setting the price of pencils at dollars. An example of an effective price floor would be the government setting the price of pencils at dollars.Some consumers lobby the government to convince law makers to impose price ceilings, what are the expected results of price ceiling (choose ALL applies) - Producer Surplus increases - Consumer Surplus increases - Consumers buy at prices lower than producer costs of production. - Consumer earn more income. - Total Surplus increasesWhen the government imposes a binding price floor, it causes which of the following to occur? Select one: a. the demand curve to shift to the right b. a shortage of the good to develop c. a surplus of the good to develop d. the supply curve to shift to the left
- Suppose that the government has been supporting the price of corn. Its free market price is $2.50 per bushel, but the government has been setting a support price of $3.50 per bushel. Which of the following are ways that the government might try to reduce the size of the corn surplus? (Select one or more answers from the choices shown.) a. Decrease the support price. b. Institute an acreage allotment program. c. Decrease demand by taxing purchases of corn. d. Raise the support price.Refer to Figure 6-7. Which of the following statements is not correct? a. A government-imposed price of $10 would be a binding price floor if market demand is Demand A and a nonbinding price ceiling if market demand is Demand B. b. A government-imposed price of $4 would be a binding price ceiling if market demand is either Demand A or Demand B. c. A government-imposed price of $10 would be a binding price ceiling if market demand is either Demand A or Demand B. d. A government-imposed price of $8 would be a binding price floor if market demand is Demand A and a binding price ceiling if market demand is Demand BA surge in bread prices causes the government to worry that many poor individuals will no longer be able to afford a basic meal. To combat the surge, the government decides to set an effective (or binding) price ceiling. Draw the market for bread below with the equilibrium price, price ceiling, and label the surplus or shortage. (Make sure to label each axis on the graph!) List three possible unintended side effects of this policy. Be specific.
