Profit

Question 1

The government has set a price floor on bread. Manufacturers cannot sell loaves for less than $5.00, which is a dollar above the market price. What will most likely result from this price control?

Revolt · Accepted Answer

The quantity demanded for bread will decrease, and the quantity supplied will increase.

Question 2

In the market, actions known as incentives affect

Revolt · Accepted Answer

consumers or producers.

Question 3

The lowest amount a manufacturer can pay factory workers is an example of

Revolt · Accepted Answer

a price floor.

Question 4

The graph shows the price of a good compared to the quantity demanded and the quantity supplied.On this graph, what does the green arrow represent?

Revolt · Accepted Answer

an effective price ceiling set below equilibrium causing a shortage.

Question 5

Goods that are considered to be needs tend to be

Revolt · Accepted Answer

inelastic when the price changes.

Question 6

What is the difference between a price floor and a price ceiling?

Revolt · Accepted Answer

A price floor is the minimum price allowed for a good. A price ceiling is the maximum price allowed for a good.

Question 7

In economics, if a good is inelastic,

Revolt · Accepted Answer

its supply or demand is not sensitive to price changes.

Question 8

Price controls on goods can be set by

Revolt · Accepted Answer

governments.

Question 9

The graph shows the price of a good compared to the quantity supplied.This graph demonstrates how

Revolt · Accepted Answer

the amount produced greatly changes with the price.

Question 10

Which is an example of a product that is considered a need?

Revolt · Accepted Answer

breakfast food

Profit Answers

More from this Course

TRY EDGENUITY HACKS