Suppose a price floor on sparkling wine is proposed by the Health Minister of the country of Vinyardia. What will be the likely effect on the market for sparkling wine in Vinyardia?
A) Quantity demanded will decrease, quantity supplied will increase, and a surplus will result.
B) Quantity demanded will increase, quantity supplied will decrease, and a shortage will result.
C) Quantity demanded will increase, quantity supplied will decrease, and a surplus will result.
D) Quantity demanded will decrease, quantity supplied will increase, and a shortage will result.
Question 2
Javier wants to start a microbrewery business and is thinking of setting it up as a sole proprietorship.
What are the advantages and disadvantages he will face by setting up the business as a sole proprietorship as opposed to a partnership or a corporation?
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