posted by .

Suppose the government has imposed a price floor on the market for soybeans. Which of the following events could transform the price floor from one that is not binding into one that is binding?

A. Farmers use improved, draught-resistant seeds, which lowers the cost of growing soybeans.

B. The number of farmers selling soybeans decreases.

C. Consumers' income increases, and soybeans are a normal good.

D. The number of consumers buying soybeans increases.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Equilibrium Price 2

    beginning from the point reached in your answer to part b, suppose a fad for bean sprout salad cuts the demand for lettuce, so that people are now willing to only buy half the lettuce, at any given price, that they would have bought …
  2. economics

    Q AC MC 1 4 12 2 8 20 3 12 28 4 16 36 5 20 44 6 24 52 7 28 60 8 32 68 9 36 76 suppose that there are 70 firms in operating in the industry. using the MC curve, find out how much output in total is delivered to the market at each price …
  3. Economics

    The price received by sellers in a market will decrease if the government Answer A. imposes a binding price floor in that market. B. decreases a binding price ceiling in that market. C. decreases a tax on the good sold in that market. …
  4. Economics

    Which of the following would not interfere with market equilibria?
  5. Economics

    Suppose the U.S government decides that the incomes of dairy farmers should be maintained at a level that allows the traditional family dairy farm to survive. It therefore implements a price floor of $1 per pint by buying surplus milk …
  6. Economics

    The market equilibrium price for coffee beans in Ecuador is $2.75/pound, a price at which growers are unable to make a profit. Due to the lack of profits, many growers have stopped production and the output of coffee beans has fallen …
  7. Economics

    Suppose you are the manager of a California winery. How would you expect the following events to affect the market equilibrium price you receive for a bottle of wine?
  8. economics

    what circular flow the the following fall into 1)You receive $15,000 in profits from your half-owner of a Krispy Kreme franchise. 2)The Georgia Bulldogs sells season football tickets for $50.00. 3)What market determines the price per …
  9. ECON

    Suppose that we are in the early days of the Bretton Woods system, and France has declared a par value for the French franc at FF6 per dollar. The allowable fluctuation band is one percent on either side of par. What is the price ceiling …
  10. Math

    Consider a market where supply and demand are given by QXS = -14 + PX and QXd = 85 - 2PX. Suppose the government imposes a price floor of $38, and agrees to purchase any and all units consumers do not buy at the floor price of $38 …

More Similar Questions