Author Question: If a price floor on coffee is set above the market-clearing price, then A) the quantity of coffee ... (Read 106 times)

Alainaaa8

  • Hero Member
  • *****
  • Posts: 576
If a price floor on coffee is set above the market-clearing price, then
 
  A) the quantity of coffee demanded will decrease.
  B) the quantity of coffee supplied will increase.
  C) the quantity demanded for coffee will increase.
  D) Both A and B will occur
  E) none of the above will occur.

Question 2

A Pigouvian subsidy leads to a socially efficient outcome by ________.
 
  A) raising individuals' marginal benefit from consumption
  B) lowering the marginal private cost of production
  C) raising the marginal external benefit from consumption
  D) lowering the marginal external cost of production



isabelt_18

  • Sr. Member
  • ****
  • Posts: 342
Answer to Question 1

D

Answer to Question 2

A



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Nearly 31 million adults in America have a total cholesterol level that is more than 240 mg per dL.

Did you know?

Between 1999 and 2012, American adults with high total cholesterol decreased from 18.3% to 12.9%

Did you know?

Throughout history, plants containing cardiac steroids have been used as heart drugs and as poisons (e.g., in arrows used in combat), emetics, and diuretics.

Did you know?

Acetaminophen (Tylenol) in overdose can seriously damage the liver. It should never be taken by people who use alcohol heavily; it can result in severe liver damage and even a condition requiring a liver transplant.

Did you know?

The B-complex vitamins and vitamin C are not stored in the body and must be replaced each day.

For a complete list of videos, visit our video library