Answer the next question(s) based on the following supply and demand schedules in units per week for a product.PriceQuantity DemandedQuantity Supplied$601004005014034040180280302202202026016010300100If the government introduced a guaranteed price floor of $40 and agreed to purchase surplus output, then the government's total support payments to producers would be
A. $3,000 per week.
B. $4,000 per week.
C. $2,500 per week.
D. $3,500 per week.
Answer: B
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Which of the following is likely to happen if the government increases its expenditure?
A) Price level will fall. B) Investment will decrease. C) Unemployment will increase. D) Consumption will increase.
The above table gives the demand schedule for Billy Bob's BBQ ribs. An increase in the price of a pound of ribs will lead to a decrease in total revenue when
A) demand is inelastic. B) the demand curve is vertical. C) the price increase occurs over the price range of 0 to $5. D) the price increase occurs over the price range of $5 to $10.
What are the three limitations on human rationality that behavioral economics emphasizes?
What will be an ideal response?
Channel stuffing is
a. Shipping out sales at the beginning of the year b. Shipping out products only if you are certain that they would not be returned c. Shipping out products at the end of the year to mark them as earned revenue, even if you know that they would be returned later d. Shipping out products at the start of the year even though it is certain that there would be more demand during the year