--%>
Assignment Help - homework help

Institutes a legal price floor in parity pricing

Assume that recent advances within agricultural technology resulted into the U.S. wheat market being at a first equilibrium upon S0D0. Farmers complain which gluts within the wheat market have depressed their incomes, endangering the family farm. Assume that now the government institutes a legal price floor at P3 per bushel of wheat beneath a program termed as parity pricing. One outcome will be like: (w) an annual surplus of wheat equal to distance ae. (x) decreases into the prices of bread and pasta. (y) an annual shortage of wheat equivalent to distance bf. (z) increases in farm income therefore total farm revenues equal area 0P4gQ4.

208_examle of Total Revenue.png

Please choose the right answer from above...I want your suggestion for the same.

   Related Questions in Microeconomics

  • Q : Cartel Select the right answer of the

    Select the right answer of the question. We would expect a cartel to achieve: A) both allocative efficiency and productive efficiency. B) allocative efficiency, but not productive efficiency. C) productive efficiency, but not allocative efficiency. D) neither allocati

    		•
  • Q : Holding less liquid assets in investment

    When households become more willing to hold less liquid assets, in that case the: (w) interest rate rises. (x) present value of future income falls. (y) interest rate falls. (z) stock market will crash. I need a go

    		•
  • Q : Shut down point of profit maximizing

    A profit maximizing competitive firm will shut down within the short run when: (w) prices do not cover average total costs. (x) this loses money on each unit of output. (y) price falls below the minimum of its AVC curve. (z) fixed costs exceed margina

    		•
  • Q : Money functions Give me answer of this

    Give me answer of this question. Money functions as: A) a store of value. B) a unit of account. C) a medium of exchange. D) all of the above.

    		•
  • Q : Labor Contracts-Check-off Provisions

    I have a problem in economics on Labor Contracts-Check-off Provisions problem. Please help me in the given question. The statement of check-off provision: (1) Was outlawed through Taft Hartley Act. (2) Is unlawful in union shops. (3) Simplifies the un

    		•
  • Q : Emerging natural monopoly A monopoly

    A monopoly will come out naturally when: (w) the government relaxes antitrust laws. (x) economies of scale are large relative to market demand. (y) variable costs are huge relative to fixed costs. (z) variable costs rise as output expands.

  • Q : Problem on Normal and Inferior Goods

    Lobster is a normal good and peanut butter is a poorer good. When your income increases, you will most likely consume: (1) More of both the goods. (2) More lobster and less peanut butter. (3) More peanut butter and less lobster. (4) Less of both goods.

    Q : Maximized output level and zero

    When all production costs for a monopoly are fixed [MC =0], in that case economic profit: (i) falls when price is raised in the inelastic range of a demand curve. (ii) rises when price is cut in the inelastic range of

    		•
  • Q : Substitution effect on supply curves

    One of the reasons for positive relationship among relative price and quantity supplied is the: (1) Technology effect, whereby bigger firms generate at lower average costs than the smaller firms. (2) Substitution effect, whereby firms switch among for

    		•
  • Q : Demand Curve when price is cut I have a

    I have a problem in economics on Demand Curve when price is cut. Please help me in the following question. When the price of Snapple is cut, then: (1) The lower quantity of Snapple is demanded. (2) A bigger quantity of Snapple is demanded. (3) Demand for the Snapple r

    		•