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 98 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
Gracias!

Dominic

  • Member
  • Posts: 328
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Complications of influenza include: bacterial pneumonia, ear and sinus infections, dehydration, and worsening of chronic conditions such as asthma, congestive heart failure, or diabetes.

Did you know?

According to the Migraine Research Foundation, migraines are the third most prevalent illness in the world. Women are most affected (18%), followed by children of both sexes (10%), and men (6%).

Did you know?

Eating carrots will improve your eyesight. Carrots are high in vitamin A (retinol), which is essential for good vision. It can also be found in milk, cheese, egg yolks, and liver.

Did you know?

Adult head lice are gray, about ? inch long, and often have a tiny dot on their backs. A female can lay between 50 and 150 eggs within the several weeks that she is alive. They feed on human blood.

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.

Norway lobsters on sale at a Spanish market Norway lobsters on sale at a Spanish market
Larynx, trachea, bronchi, and lungs with an expanded view showing the structures of an alveolus and Larynx, trachea, bronchi, and lungs with an expanded view showing the structures of an alveolus and
In this cartoon, Boss Tweed welcomes cholera—a skeletal figure of death carrying a handbag from “Asi In this cartoon, Boss Tweed welcomes cholera—a skeletal figure of death carrying a handbag from “Asi
Based on this figure, what pathway is used during urinary catheterization, in which a tube is ... Based on this figure, what pathway is used during urinary catheterization, in which a tube is ...
Mobilize the joints in the hand. Follow with figure-8s at the knuckles and scissoring the ... Mobilize the joints in the hand. Follow with figure-8s at the knuckles and scissoring the ...
Presidential success under unified and divided government, from Eisenhower to trump Presidential success under unified and divided government, from Eisenhower to trump
Video: Properties of water -structure of water and polarity (Ionized and polar compounds)

For a complete list of videos, visit our video library