Question : 21) The above figure shows the domestic market for tomatoes. : 1226537

 

 

 

21) The above figure shows the domestic market for tomatoes. Suppose this market is isolated from global competition and there is a support price set at $16. In this figure, what area equals the consumer surplus?

A) area A + area B + area C

B) area A + area F

C) area C + area D + area E + area G

D) area A

E) area F

 

22) The above figure shows the domestic market for tomatoes. Suppose this market is isolated from global competition and there is a support price set at $16. In this figure, what area equals the producer surplus?

A) area A + area B + area C

B) area A + area F

C) area B + area C + area D + area F

D) area C + area D + area E + area G

E) area F

23) The above figure shows the domestic market for tomatoes. Suppose this market is isolated from global competition and there is a support price set at $16. In this figure, what area equals the deadweight loss?

A) area B + area C + area D + area F

B) area E

C) area C + area D + area E + area G

D) area A

E) area F

 

24) The above figure shows the domestic market for tomatoes. Suppose this market is isolated from global competition and there is a support price set at $16. In this figure, what area equals the total subsidy paid to tomato farmers?

A) area E

B) area B + area C + area D + area F

C) area C + area D + area E + area G

D) area A

E) area F

 

25) Price supports are generally used in

A) labor markets.

B) industrial markets.

C) housing markets.

D) markets for services.

E) agricultural markets.

26) To have an effective price support program, the government must

i.isolate the domestic market from the world market.

ii.pay the farmers a subsidy.

iii.introduce a price floor.

A) i only

B) ii only

C) iii only

D) ii and iii

E) i, ii, and iii

 

27) A price support directly sets the

A) amount of production.

B) subsidy the government must receive from producers.

C) equilibrium quantity.

D) lowest price for which the good may be sold.

E) highest price for which the good may be sold.

 

28) To keep the price at the level set by a price support, the government must

A) buy some of the good.

B) sell some of the good.

C) receive a subsidy from the producers.

D) insure that imports are readily available.

E) be careful to always set the price support below the equilibrium price.

29) With a price support program, who receives a subsidy?

A) only consumers

B) only producers

C) the government

D) importers

E) both consumers and producers receive a subsidy

 

30) When a price support is set above the equilibrium price, producers ________ the quantity supplied and consumers ________ the quantity demanded.

A) increase; increase

B) increase; decrease

C) decrease; increase

D) decrease; decrease

E) do not change; do not change

 

31) An effective price support ________ producers and ________ a deadweight loss.

A) has no effect on; does not create

B) benefits; creates

C) harms; creates

D) benefits; does not create

E) harms; does not create

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more