Asked by
Alain Poitevin
on Oct 26, 2024
Verified
An increase in producer surplus would most likely occur if:
A) an effective price floor was imposed.
B) an effective price ceiling was imposed.
C) the market price of the good decreased.
D) no changes occurred in the market.
Producer Surplus
The disparity between the price at which sellers are ready to offer a product and the price they actually get.
Price Floor
A government-imposed limit below which prices cannot fall, typically used to ensure that producers can cover their costs.
Market Price
The current price at which an asset or service can be bought or sold in a particular market.
- Learn about the repercussions that price constraints, including ceilings and floors, have on the equilibrium within markets.
- Comprehend the purpose of minimum wages as a price control tool and its repercussions on job availability and market movements.
Verified Answer
KS
Learning Objectives
- Learn about the repercussions that price constraints, including ceilings and floors, have on the equilibrium within markets.
- Comprehend the purpose of minimum wages as a price control tool and its repercussions on job availability and market movements.