Refer to Figure 9.5. If the government establishes a price floor of $2.50 and farmers grow only the amount of berries that will be sold, producer surplus will
A) fall by $50.
B) fall by $100.
C) remain the same.
D) rise by $50.
E) rise by $100.
C
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The classical growth theory is that real GDP per person ______.
A. only temporarily rises and then returns to the subsistence level B. grows forever C. is constant and does not change D. increases as the population grows
The primary benefits derived from tariffs usually accrue to the
a. domestic consumers of goods protected by the tariffs. b. foreign producers of goods protected by the tariffs. c. domestic producers of export goods. d. domestic suppliers of goods protected by the tariffs.
Which of the following is LEAST likely to be an outcome of a cartel as compared to the situation before the cartel was formed?
A) Cartel members charge higher prices. B) Cartel members reduce production. C) Cartel members make fewer profits. D) Cartel members do not compete with each other in pricing decisions.
Initially the beef and mutton markets are in equilibrium, then preferences shift away from beef and into mutton. If you are a cattle rancher, the best profit-maximizing strategy is to
A. shut down. B. decrease output so as to minimize short run losses. C. increase output so as to increase your market share. D. shift some of your ranching capacity into cattle raising.