The current price floor in the agricultural lettuce market makes it such that price of lettuce is 25% higher than equilibrium price and 100 heads of lettuce are demanded. Assuming that the elasticity of demand for lettuce is -0.50, what would be the equilibrium quantity of lettuce if the government removed the current price floor?
A) Quantity = 125
B) Quantity = 121.5
C) Quantity = 112.5
D) Quantity = 75
C
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Several houses built in a country during a certain year got damaged due to an earthquake. Which of the following is likely to happen due to this damage?
A) The country's GDP will remain unchanged. B) The trade surplus of the country will increase. C) The country's GDP will decrease. D) The trade deficit of the country will increase.
In the figure above, if the price is $8 a unit, is there a shortage or surplus and what is the amount of any shortage or surplus? What is the equilibrium price and quantity?
What will be an ideal response?
The rules of accounting generally require that ________ be included in a firm's financial records
A) only explicit costs B) both explicit costs and implicit costs C) only implicit costs D) neither explicit costs nor implicit costs
Adding more resources causes:
a. downward movement along a production possibilities curve. b. the production possibilities curve to shift in. c. upward movement along a production possibilities curve. d. the production possibilities curve to shift out. e. the production possibilities curve to become positively sloped.