Asked by
danielle chebat
on Dec 04, 2024
Verified
Refer to Figure 9.2.1 above. The result of the minimum imposed price:
A) increases the number of producers and increases the number of consumers in the market.
B) increases the number of producers and decreases the number of consumers in the market.
C) decreases the number of producers and increases the number of consumers in the market.
D) decreases the number of producers and decreases the number of consumers in the market.
Minimum Imposed Price
An external intervention (usually by the government) to set a price floor, preventing the market price from falling below a certain level.
Consumers
Individuals or groups that purchase goods or services for personal use.
Producers
Entities or individuals that create or supply goods and services.
- Apprehend the influence of state meddling, including price limitations, on market balance, as well as on consumer and producer surplus.
- Examine market model illustrations to discern regions indicative of consumer and producer surpluses, and deadweight losses.
Verified Answer
EL
Learning Objectives
- Apprehend the influence of state meddling, including price limitations, on market balance, as well as on consumer and producer surplus.
- Examine market model illustrations to discern regions indicative of consumer and producer surpluses, and deadweight losses.