Suppose the market equilibrium price of wheat is $5 per bushel, and the government sets a price floor of $7 per bushel to aid growers. What is the most likely result of this action?
a. There will be a shortage of wheat.
b. There will be a surplus of wheat.
c. There will be an increase in the quantity of wheat demanded as the result of the price floor.
d. There will be a decrease in the quantity of wheat supplied as the result of the price floor.
B
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The figure above shows that to make the price support work, the government buys ________ million tons of sugar beets
A) 10 B) 20 C) 30 D) 5 E) 15
If the real exchange rate rises 4%, domestic inflation is 2%, and foreign inflation is 0%, what is the percent change in the nominal exchange rate?
A) 6% B) 4% C) 2% D) 0%
Preston goes to the movies every Sunday afternoon. The movie theater offers 4 combinations of popcorn and beverages: the "mini-combo" costs $5 and includes a small popcorn and a small drink, the "medium-combo" costs $7 and includes a medium popcorn and a medium drink, the "value-combo" also costs $7 and includes a small popcorn and a large drink, and the "large-combo" costs $9 and includes a
large popcorn and a large drink. Preston always purchases the "value-combo.". We can conclude that a. Preston cannot afford the "large-combo.". b. Preston cannot afford the "medium-combo.". c. Preston prefers a combo with a larger popcorn-to-beverage ratio. d. Preston prefers a combo with a smaller popcorn-to-beverage ratio.
All of the following are examples of macroeconomic problems EXCEPT
A. consumers deciding to buy more fish and less beef because of concerns about a healthier diet. B. a decline in the rate of overall economic growth. C. unemployment caused by a fall off in the level of residential construction. D. inflationary pressures caused by an increase in the cost of petroleum.