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Author Question: Suppose the government decides that a particular commodity is a luxury and decides to fix its price ... (Read 89 times)

Coya19@aol.com

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on: Jun 30, 2018
Suppose the government decides that a particular commodity is a luxury and decides to fix its price above the market-determined price. What implications could this policy have?
 
  What will be an ideal response?

Question 2

Refer to the above figure. Which of the graphs is consistent with the Keynesian short-run aggregate supply curve?
 
  A) Graph A B) Graph B C) Graph C D) Graph D


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momo1250

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Reply #1 on: Jun 30, 2018
Answer to Question 1

If the government fixes the price of a commodity above the market-determined price, it will provide an incentive to sellers to supply more. This will result in an excess supply of the commodity.

Answer to Question 2

B


Coya19@aol.com

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Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

aruss1303

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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