Exhibit 4-10 Supply and demand data for apricots
Bushels demandedper month
Price perbushel
Bushels suppliedper month
50
$5
80
55
4
75
60
3
70
65
2
65
70
1
55
Which of the following would occur if the government sets a price floor of $4 in the market shown in Exhibit 4-10?
A. There would be a shortage of apricots.
B. Buyers would not purchase all of the apricots that are grown.
C. Buyers would purchase more apricots than are currently being supplied.
D. Farmers would reduce the number of acres allocated to the growing of apricots.
Answer: B
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