This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Refer to Figure 4-7 which shows the market for watermelons. Suppose the government imposes a price ... (Read 57 times)

krzymel

  • Hero Member
  • *****
  • Posts: 548
on: Jun 29, 2018
Refer to Figure 4-7 which shows the market for watermelons. Suppose the government imposes a price floor of Pw. How will the price floor affect the quantity supplied, quantity demanded, and quantity exchanged?
 
  What will be an ideal response?

Question 2

According to the quantity theory of money, inflation is caused by
 
  A) the money supply growing faster than real GDP.
  B) GDP growing at the same rate as the money supply.
  C) the money supply growing slower than real GDP.
  D) GDP growing faster than the money supply.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

akudia

  • Sr. Member
  • ****
  • Posts: 347
Reply #1 on: Jun 29, 2018
Answer to Question 1

The price floor will have no effect on the market outcome. An effective price floor must lie above the free-market equilibrium. Thus, in this case the market outcome will be determined by forces of demand and supply.

Answer to Question 2

A


krzymel

  • Member
  • Posts: 548
Reply 2 on: Jun 29, 2018
Wow, this really help

kthug

  • Member
  • Posts: 332
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

The first monoclonal antibodies were made exclusively from mouse cells. Some are now fully human, which means they are likely to be safer and may be more effective than older monoclonal antibodies.

Did you know?

Asthma attacks and symptoms usually get started by specific triggers (such as viruses, allergies, gases, and air particles). You should talk to your doctor about these triggers and find ways to avoid or get rid of them.

Did you know?

It is widely believed that giving a daily oral dose of aspirin to heart attack patients improves their chances of survival because the aspirin blocks the formation of new blood clots.

Did you know?

People with high total cholesterol have about two times the risk for heart disease as people with ideal levels.

Did you know?

People often find it difficult to accept the idea that bacteria can be beneficial and improve health. Lactic acid bacteria are good, and when eaten, these bacteria improve health and increase longevity. These bacteria included in foods such as yogurt.

A plot of trophic diversity across the major groups of organisms shows highest trophic diversity amo A plot of trophic diversity across the major groups of organisms shows highest trophic diversity amo
The accessory organs of the digestive system: the liver, gallbladder, and pancreas. Image shows the The accessory organs of the digestive system: the liver, gallbladder, and pancreas. Image shows the
Otitis media. This illustration shows an inflamed tympanic cavity, which is the most common source o Otitis media. This illustration shows an inflamed tympanic cavity, which is the most common source o
front muscle figure front muscle figure
This lithograph of the New York draft riots, 1863, shows that although the rioters mainly targeted b This lithograph of the New York draft riots, 1863, shows that although the rioters mainly targeted b
This frame from a home video shows Eric Harris (on the left) and Dylan Klebold (on the right) as ... This frame from a home video shows Eric Harris (on the left) and Dylan Klebold (on the right) as ...
Video: Lipid absorption - end products & transport mechanism

For a complete list of videos, visit our video library