« previous next »

Author Question: Farmers can use their land to grow soy beans or corn. If the price of corn rises, A) the supply ... (Read 177 times)

dmcintosh

  • Hero Member
  • *****
  • Posts: 517
on: Jun 29, 2018
Farmers can use their land to grow soy beans or corn. If the price of corn rises,
 
  A) the supply of soybeans decreases and the soybean supply curve shifts leftward.
  B) the supply of soybeans increases.
  C) the supply of corn increases and the corn supply curve shifts rightward.
  D) the supply of corn increases.

Question 2

Explain why a price floor set below the equilibrium price is ineffective.
 
  What will be an ideal response?


Koolkid240

  • Sr. Member
  • ****
  • Posts: 357
Reply #1 on: Jun 29, 2018
Answer to Question 1

A

Answer to Question 2

Price floors are legal minimums; it is legal to charge the floor price, or higher. If the equilibrium price is legal, that is, the equilibrium price is above the price floor so that the price floor is below the equilibrium price, then the price floor has no effect on the market because the market price does not change.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

The term bacteria was devised in the 19th century by German biologist Ferdinand Cohn. He based it on the Greek word "bakterion" meaning a small rod or staff. Cohn is considered to be the father of modern bacteriology.

Did you know?

More than 34,000 trademarked medication names and more than 10,000 generic medication names are in use in the United States.

Did you know?

Stevens-Johnson syndrome and Toxic Epidermal Necrolysis syndrome are life-threatening reactions that can result in death. Complications include permanent blindness, dry-eye syndrome, lung damage, photophobia, asthma, chronic obstructive pulmonary disease, permanent loss of nail beds, scarring of mucous membranes, arthritis, and chronic fatigue syndrome. Many patients' pores scar shut, causing them to retain heat.

Did you know?

The FDA recognizes 118 routes of administration.

Did you know?

You should not take more than 1,000 mg of vitamin E per day. Doses above this amount increase the risk of bleeding problems that can lead to a stroke.

Water amount needed to grow crops Water amount needed to grow crops
Thanks to agricultural advances, the world’s farmers can grow plenty of food Thanks to agricultural advances, the world’s farmers can grow plenty of food
The profit, p(t), made at a fair depends on the price of the ticket, t. The profit is modelled ... The profit, p(t), made at a fair depends on the price of the ticket, t. The profit is modelled ...
Suppose a country imports televisions. The country's supply and demand curves are shown in ... Suppose a country imports televisions. The country's supply and demand curves are shown in ...
Early growth of corn (Zea mays), a typical monocot. Early growth of corn (Zea mays), a typical monocot.
Offset Method Plot of Land with Length Line Offset Method Plot of Land with Length Line
Video: Simple Diffusion - Ion transport

For a complete list of videos, visit our video library