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Question
Of the following cause-and-effect relationships, which is the most likely that induced a price floor on the market for soybeans?
a. Government-funded economists have determined that a price floor is good for society, and Congress enacted legislation for it.
b. Major consumers and producers in the soybean market have formed an association that has determined that a price floor would increase profits and lobbied Congress for legislation to enact it.
c. Producers of soybeans know a price floor will protect their profits and they lobbied Congress for legislation to enact it.
d. Consumers of soybeans know a price floor will protect their profits and they lobbied Congress for legislation to enact it.
e. Agricultural workers know a price floor will protect their jobs and they lobbied Congress for legislation to enact it.
Answer
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Related questions
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The economic entity most likely to engage in price gouging is
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What will an individual do differently as a buyer in the black market in the long run?
a. He or she will substitute away from the product.
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d. When a binding price ceiling exists, he or she will be willing to pay a lower price.
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Q:
What is the long-run consequence of a price ceiling law?
a. A surplus will continue to exist and will grow larger over time.
b. A surplus will continue to exist and will grow smaller over time.
c. A shortage will continue to exist and will grow larger over time.
d. A shortage will continue to exist and will grow smaller over time.
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Suppose Solomon lives in a community with no price controls. What do you expect will happen if his town borders a community where there is a binding price ceiling on most products?
a. Prices in the legal market in the community with a binding price ceiling will rise.
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c. There will be shortages in the community with a binding price ceiling.
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b. The binding price ceiling will discourage patients from obtaining the drugs they need.
c. The binding price ceiling will increase the likelihood that consumers will obtain needed drugs on the black market.
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e. The binding price ceiling will cause firms to spend too much time making a drug without any flaws.
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a. Demand for jelly will increase along with the price.
b. Demand for jelly will decrease along with the price.
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e. The supply of jelly will decrease and the price will increase.
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