--%>
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 : Distribution of Income before taxes and

    Income is distributed before taxes and transfers in the United States such as, in 2003 year, the lowest quintile [20%] earned around: (w) 4% of all income and the highest quintile earned over half of all income. (x) 5% as much as the highest quintile.

    		•
  • Q : Illustration of most complete monopoly

    The most complete monopoly by the given list would be: (1) McDonald’s dominance in marketing fast food burgers. (2) the Federal Reserve System [i.e., an arm of the government] issuing all US currency. (3) limiting subsidized low tuitions at stat

    		•
  • Q : Needs a goal of maximizing by

    The long run survival of a purely-competitive firm needs a goal of maximizing: (i) managerial salaries. (ii) total costs. (iii) economic profits. (iv) total revenue. (v) fixed costs to minimize variable costs. How

    		•
  • Q : Goals of Firm-Standard economic

    Can someone please help me in finding out the precise answer from the following question. The standard economic assumption which firms attempt to maximize the profit: (i) Is the beginning point for most of the economists’ analyses of how to operate firms. (ii) C

    		•
  • Q : Liabilities for damages and penalties

    Can someone please help me in finding out the accurate answer from the following question. The Caveat venditor is an ancient legal doctrine which encourages: (i) Consumer exploitation. (ii) a ‘buyers beware’ approach. (iii) Enforcement of the seller’

    		•
  • Q : Asymmetric information Provide the

    Provide the solution of this question. The problem of asymmetric information is that: A) neither health care buyers nor providers are well-informed. B) health care providers are well-informed, but buyers are not. C) the outcomes of many complex medical procedures cannot be predicted. D) insurance co

    		•
  • Q : Price elasticity and market power The

    The price elasticity of demand equals one when this firm produces where total revenue is: (i) $72,000 per period. (ii) $80,000 per period. (iii) $96,000 per period. (iv) $100,000 per period. (v) $144,000 per period.

    Q : Economic profits in long run A monopoly

    A monopoly will make economic profits within the short run: (w) but cannot create economic profits in the long run. (x) if average total costs [ATC] > P. (y) as long as total revenue exceeds total costs. (z) All of the above.

    		•
  • Q : Perfectly price elastic demand For

    For Cournot’s Spring Water the demand is perfectly price elastic at:  (i) point a. (ii) point b. (iii) point c (iv) point d. (v) point e.

    Q : Maximizes profit to ignore variable

    Monsieur Cournot has a monopoly on an artesian well from that flows tasty spring water along with medicinal properties. To ignore variable costs, he is adamants that customers bring their own pails and fill them individually. Unluckil

    		•