Friday
April 18, 2014

Homework Help: Econ

Posted by Mark on Saturday, October 13, 2012 at 11:40pm.

I have spent a few hours on this question. Can anyone help?


The demand for Healthy Wheat Cookies is downward sloping, while the supply is upward sloping. Healthy Wheat Cookies are a normal good produced mainly from wheat and sugar. The government recently put a price floor on wheat. If the price floor causes disequilibrium in the wheat market, explain what would likely happen to the quantity supplied and price of Healthy Wheat Cookies, given that nothing else changes, and explain why this would happen.

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