If the regulation of a monopoly results in a price equal to marginal cost but the price is below average total cost the firm will need subsidies to stay in business.
A market arrangement known as a monopoly has just one supplier for a given good. Price and marginal cost are equal in a completely competitive market since they are also equal in average total cost, allowing businesses to turn a profit. The firm can, however, charge a greater price than the marginal cost in a monopoly market, and the difference between price and marginal cost is known as economic profit.
In this situation, the firm won't be able to cover its average total cost, which consists of both variable and fixed costs, if the regulator regulates monopoly to charge a price that equals marginal cost. As a result, the company won't be able to turn a profit and would require subsidies to stay in business.
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Kaden purchased 2,000 shares of common stock in Billings Corporation last year. He learned several months later that the stock does not pay a dividend. Kaden should proceed to?
A- hire an attorney and file a lawsuit.
B- hire an attorney and go after the registered representative that brokered the trade.
C- do the proper research before he invests.
D- immediately proceed to sell the shares.
When investing in common stock, it is important to do your due diligence and research the company you are considering investing in.
Kaden should proceed to?This includes understanding if the company pays dividends and what their financial performance is like.The correct answer is C- do the proper research before he invests. In this case, Kaden learned several months later that the stock does not pay a dividend, which is something he should have known before making the investment. Therefore, the best course of action for Kaden would be to do the proper research before investing in the future to avoid similar situations.Options A and B are not appropriate as there is no evidence that the company or the registered representative acted illegally or in a fraudulent manner. Option D, immediately proceeding to sell the shares, may be a viable option if Kaden feels that the investment is not meeting his expectations, but this should not be done without first evaluating the long-term potential of the stock and considering other options such as holding on to the shares and monitoring the company's performance.To learn more about proper research refer to:
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suppose you have won a free ticket to see a foo fighters concert. this ticket has no resale value. also suppose that green day has a concert the same night. the green day concert represents your next-best alternative activity to the foo fighters concert. tickets to the green day concert cost $57, and on any particular day, you would be willing to pay up to $154 to see green day. assume that there are no additional costs of seeing either show. based on the information presented here, the opportunity cost of seeing the foo fighters is
Based on the information presented here, the opportunity cost of seeing the foo fighters is $154 - $54= $97.
The Foo Fighters are an American rock band based in Seattle that formed in 1994. Former Nirvana drummer Dave Grohl formed the Foo Fighters as a one-man effort. Following the success of his self-titled debut album in 1995, Grohl assembled a band that included Nate Mendel, William Goldsmith and Pat Smear.
After a series of lineup changes, including the release of Goldsmith and Smear, the band's main line-up of Grohl, Mendel, Chris Shiflett and Taylor Hawkins was formed in 1999. Grohl hired Mendel and Goldsmith, both members of Sunny Day Real Estate, and Smear, who had previously toured with Nirvana, prior to the release of Foo Fighters' debut album.
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a pharmaceutical company has resources hosted on both their on-premises network and in aws cloud. they want all of their software architects to access resources on both environments using their on-premises credentials, which is stored in active directory. in this scenario, which of the following can be used to fulfill this requirement?
SAML, or Security Assertion Markup Language, is a standardized method of informing external software and services that a customer is who they claim to be.
SAML enables single instance (SSO) technology by allowing a user to be authenticated once and then have that authentication sent to various apps. SAML 2.0 is the most recent version of SAML.
Consider SAML authentication to be similar to an identification card: a brief, standardized way to demonstrate who someone is.
Instead of, instance, doing a battery of DNA testing to prove someone's identification, a quick peek at their ID card may suffice.
One of the most difficult difficulties in computing and networking is getting systems and devices created by different suppliers for various reasons to function together.
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the state levies a 4 percent sales tax on merchant sales volume while the local government levies a 2 percent sales tax on the same activity. merchants are required to remit the full amount of all levied taxes to the state government within 15 days of month-end and the state is required to remit collected taxes to local authorities within 30 days of receipt. assume the state and local authorities had june 30 year-ends, and that sales volume for the months of june and july was $100,000 and $200,000, respectively. at june 30, each government would accrue the following related to sales activity:
At June 30, each government would accrue $6000 which is 100000(4% + 2%) related to the sales activity or sales tax.
What is sales tax?
When certain products and services are sold, the government is charged a fee known as a sales tax. Normally, laws allow the seller to add the tax to the customer's bill at the moment of purchase. Sales taxes provide revenue for local and state governments. Many purchases involve payment of sales tax. However, there are some products that are exempt from taxes, such as groceries, prescription medications, and clothing of a specified type or up to a certain quantity in some states and municipalities.
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which of the following situations describes a material participant? da'ron participated in activity a for 150 hours, activity b for 90 hours, and activity c for 75 hours.
martha participated in activity g for 210 hours, more than any other individual. prema participated in activity h for 375 hours each year from 2016 through 2021. willard participated in activity j for 500 hours.
Willard participated in activity j for 500 hours of the following situations describes a material participant.
A person's intention serves as the driving force behind each action they take as an agent. Determining how actions vary from other types of behavior, such as automatic responses, is the first task in the philosophy of action.
There is widespread agreement that this question's resolution depends on the agent's motivations. Driving a car is therefore an action since the agent wishes to do so, whereas sneezing is only a behavior because it occurs without the agent's knowledge or consent. According to this perspective, a thing's causal history is what sets it apart from other events.
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when an analyst is looking at a company for the first time, which of the following four actvities foes he do first
when an analyst is looking at a company for the first time, defines the industries in which the company operates.
How do analysts work?Different trends are the subject of analyst research, analysis, and reporting. Analysts try to derive conclusions that can be used to develop workable plans in various businesses using data that has either been collected or made publically available.
Who are those who are analysts?An analyst is a person who collects information, examines it, and draws conclusions from what they learn. In the data, they search for patterns, and based on what they discover, they make significant judgments and changes. Many different industries employ analysts, who aid in increasing productivity and deciding on long-term course of action.
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Municipal bonds would be an appropriate investment for which of the following?
I. Individuals
II. Individual Retirement Accounts
III. Bank Holding Companies
IV. Casualty Companies
The correct option to this question here is option c. Municipal bonds would be an appropriate investment for Bank Holding Companies.
Municipal bonds (abbreviated "munis") are debt securities issued by states, cities, counties, and other public entities to support day-to-day commitments and capital projects such as the construction of schools, roadways, and sewer systems.
Muni bonds now not only provide high returns, but they are also a higher-quality asset class. Approximately 85% of the market is graded A or better. And the existing fundamentals are extremely strong.
One significant advantage of municipal bonds, or "munis," is that the interest they pay is often tax-free. In addition, if the issuer is from the investor's home state, they are often exempt from state income taxes.
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Peter is in charge of making sure adequate raw materials are ordered, production is flowing smoothly, and finished products are being sold. Peter is likely involved in
Peter is in charge of making sure adequate raw materials are ordered, production is flowing smoothly, and finished products are being sold. Peter is likely involved in-operations management
Operations management is the administration of business practices aimed at ensuring maximum efficiency within a business, which may include managing inventory, personnel, and production processes.It entails the responsibility for ensuring that business operations are efficient in terms of using as few resources as possible while still meeting customer requirements. It is responsible for resource management, customer distribution of goods and services, and queue system analysis. The goal of operations management is to improve the efficiency and effectiveness of the organization
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note disclosures in governmental external financial statements related to cash and cash equivalents explain which of the following?
How the government classified cash equivalents in the enterprise fund cash flow statements' beginning and ending balances. Option A is the right response in this case.
The cash and cash equivalents note disclosures describe how cash equivalents are categorized in the starting and ending balances on the cash flows statement.
How governments classify cash flows in the cash flows statement is outlined in GASB Statement No. 9. Governments are not required to disclose the details of maturities of cash equivalents included in the cash flows statement. Cash equivalents are not distributed among the four categories of the cash flow statement.
Complete question:
Note disclosures in governmental external financial statements related to cash and cash equivalents explain which of the following?
A - How the government classified cash equivalents in the beginning and ending balances on the enterprise fund cash flow statements.
B - How the government classified cash flows among the four categories in the cash flows statements
C - Details of the maturities for cash equivalents included in the ending balance on the cash flows statements
D - Details of which cash equivalents are included in the operating flows section of the cash flows statement.
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Which of the following actions by the Fed would be intended to fight recession?
A. Raising the reserve requirement.
B. Buying bonds in the open market.
C. Raising the Discount Rate.
D. All of the above are intended to fight recession.
We should initially comprehend how the recession affects us. recession alludes to a time of transitory monetary log jam during which exchange and modern action are diminished, typically recognized by a fall in Gross domestic product for two progressive quarters.
Presently, to battle the recession on the lookout, the Fed can make quite a few strides. Save prerequisite alludes to how much money banks need to keep in their vaults to have the option to meet their liabilities in the event of abrupt withdrawals.
Assuming the Fed chooses to purchase securities on the lookout, that would mean more cash in the possession of the overall population to spend, contribute, and run businesses. This will prompt an expansion in monetary action and accordingly assist the saving money with battling the downturn.
Hence, To battle the downturn, the Fed will go with purchasing the securities in the open market.
Hence, Choice B is the right response.
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which of the following is a benefit that a business is likely to attain from purchasing new equipment?
The advantage that a business is probably going to accomplish from buying new gear is "Increased productivity."
The above assertion depends on the way that new hardware works quicker, and is all the more effective when utilized contrasted with old innovation. These characteristics of new hardware will prompt expanded efficiency. Putting resources into gear empowers representatives to work quicker and lessens manual and dreary errands.
Assuming that either how much information sources or level of innovation falls, your bend will move left. This happens because you produce less of every great currently contrasted with when the degree of innovation was higher.
Consequently, it very well may be inferred that the business advantage of buying new gear is to "increase productivity."
Hence option (A) is correct.
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This question is not complete , here I am attaching the complete question:
which of the following is a benefit that a business is likely to attain from purchasing new equipment?
(A) Increased productivity
(B) Better entrepreneurial knowledge
(C) Fewer natural resources required
(D) Lower costs
which of the following is the next step in the mortgage process after a bank pre-qualifies a buyer...?
Pre-approval would be the next step in the mortgage process after a bank pre-qualifies a buyer.
Most people who are wanting to buy a home are aware that they must first pre-qualify or be pre-approved for a mortgage. These two actions are crucial in the process of applying for a mortgage. Although some individuals use the terms interchangeably, there are significant distinctions that every homebuyer needs to be aware of. Pre-qualification is just the beginning. It provides you a rough indication of the size of loan you might be eligible for. The second step is pre-approval, which is a conditional promise to provide you the mortgage.
According to Todd Kaderabek, a residential broker associate with Beverly-Hanks Realtors in downtown Asheville, North Carolina, "the pre-qualification process is based on consumer-submitted data." "Preapproval is customer data that has been confirmed, like a credit check."
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imagine that a friend wants to start a new business and has asked you what it takes to succeed as an entrepreneur. based on the guidance provided by the small business association, you would explain that successful entrepreneurs possess which of the following characteristics and skills? check all that apply. they are supported by mentors. they are creative thinkers. they are decisive decision makers. they are risk averse.
One would explain that successful entrepreneurs possess comfortable with risk, They are skilled negotiators and They are persuasive speakers.
Entrepreneurship is the process of creating or extracting economic value. According to this definition, entrepreneurship is defined as change, often including risk above what is commonly faced when beginning a firm, and may contain values other than monetary ones.
An entrepreneur is a person who establishes and/or invests in one or more enterprises, assuming the most of the risks and reaping the majority of the gains Entrepreneurship refers to the process of starting a business. The entrepreneur is frequently seen as an innovator, a provider of new ideas, items, services, and business/or operations.
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true/false. marketing communications entails the use of undifferentiated targeting approaches wherein entire markets are pursued and the marketing organization is not actively pursuing differentiation.
True. Mass marketing communications entails the use of undifferentiated targeting approaches wherein entire markets are pursued.
The technique of appealing to a whole market rather than a specific group is known as mass marketing. The goal of mass marketing is to reach the greatest number of potential clients. The method is often used by huge organizations and is the polar opposite of specialty marketing. To achieve a bigger number of sales and maximum brand exposure, mass marketing often focuses on offering "must-have" items at a cheaper price. One of the most significant advantages of mass marketing is the breadth and low cost of promoting on a much wider scale than smaller business marketing tactics. When a corporation utilizes mass marketing, each advertising is distributed across a range of channels (including print media, social media, and television) and has the potential to reach thousands or even millions of people.
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if you ignored the probability weights and assumed the market conditions were equally probable, the mean demand would be 35,000 units and the standard deviation would be 25,100 units.
Probability of demand under market conditions (in thousands of units) A horrific 5�d... market conditions were just as likely, average demand would be 35,000 units.
What is the mean and standard deviation?
The standard deviation is calculated as the square root of the variance by determining how much each data point differs from the mean. When the data points are farther from the mean, the deviation is larger. The mean of the sample mean ˉX that we just calculated is exactly the population mean. The standard deviation of the sample mean ˉX that we just calculated is the population standard deviation divided by the square root of the sample size:
√10=√20/√2
The mean can only be calculated for discrete numeric variables or continuous values. It is simply obtained by dividing the sum of all values in the data set by the number of values.
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read the scenario below and choose whether you think this is an economic, cultural, or military influence to another country. after a natural disaster in a poor country, a wealthier country provides aid workers.
People or nations can act in ways that result in conflict or cooperation. A wealthier nation might deploy humanitarian workers to a developing country in the event of a national catastrophe.
What do you mean by collaboration?
Collaboration is the process of creating anything while working as a team. Collaboration might take place between two people or many people, intimate friends or strangers. By working together, you give yourself the chance to produce something that is superior to what might be produced alone. Collaboration Definition - The simplest way to define collaboration is to explain that it is the process of two or more people working together to complete a task or achieve a goal.
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If there is no specialization of resources in the production of milk and cream, the production possibilities curve for an economy that produces these two goods is
a. bowed out and downward-sloping
b. straight and downward-sloping
c. bowed in and downward-sloping
d. horizantal
e. vertical
Answer:
C. Bowed in and downward-sloping
The graphs below illustrate an initial equilibrium for the economy. Suppose that investment spending falls. Use the graphs to show the new positions of aggregate demand (AD), short-run aggregate supply (SRAS), and long-run aggregate supply (LRAS) in both the short-run and the long-run, as well as the short-run and long-run equilibria resulting from this change. Then answer what happens to the price level and GDP.
The short-run aggregate supply curve is shifted to SARS 2 by an increase in labor costs. When real GDP falls to Y 2, prices rise to P 2.
What is a short-run aggregate supply curve?
It's easier to understand how real GDP can deviate from potential output and how they actually deviate from potential output when examining the macroeconomics in the short run, where wage and price rigidities can prevent the economy from reaching potential output. In this section we examine how fluctuations in aggregate supply and aggregate demand affect the economy as a whole. According to the long run model of aggregate supply and demand, the economy will eventually reach its maximum potential. To understand how nominal wages and price rigidities can cause real GDP to be higher or higher than its short-run potential, one needs to examine the economy's response to changes in aggregate demand.
Trillion levels, but at a higher price level it would immediately stabilize if all prices in the economy adjusted quickly. The real problem is the short-run aggregate supply curve.
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Mrs. Jones, an appraiser, is appraising a single family residence for which she has located six closely comparable properties, all sold within the past six months. The subject property is rented for $1,500 per month. It is a custom-built home, approximately three years old. Mrs. Jones would probably give the most weight in her final estimate of value to which of the following appraisal methods?
1 Cost approach
2 Market data approach
3 Income approach
4 Gross rent multiplier
During a mild recession, if policymakers want to reduce unemployment by increasing investment, which of the following policies would be most appropriate?
Purchase of government securities by the Federal Reserve
Purchasing government securities by the FED would be the most appropriate policy.
What is Policy?A government or other institution's policy can take the form of a legislation, rule, process, administrative action, financial incentive, or voluntary practice.Allocations of resources frequently reflect policy decisions. Policies in numerous industries can have an impact on government.For instance, policies in schools can enhance the nutritional value of school meals, while policies in transportation can promote physical activity (by creating communities that are pedestrian- and bicycle-friendly).The establishment and application of public health laws, rules, or voluntary practices that have an impact on organizational transformation, individual behavior, and system development are all examples of policy development in the context of public health. Such policy measures can be used in the health sector, for instance, by influencing the delivery of healthcare through Medicare's conditions of enrollment or reimbursement or by utilizing the tax code to promote employer-provided health insurance.To learn more about Policy from the given link
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Question: During a mild recession, if policymakers want to reduce unemployment by increasing investment, which of the following policies would be most appropriate?
Purchase of government securities by the Federal Reserve
Purchasing government securities by the FED
Escalation Every year, your family poses for a photograph to be used in its holiday cards. To add interest to the photo, everyone wears an identical accessory: sometimes you all wear the same scarf, other times you all wear the same sweater. To avoid getting stuck with another item of questionable fashion taste, you proposed wearing a Sean John Tweed Diamond Top Fedora this year. Everyone agreed the hat was a good choice, so you bought one for every family member, and no more shopping needed to be done. Escalation
Satisficing Intuition
Satisficing, as everyone was satisfied with the given choice of accessory.
Accessories are something used to enhance one's outfit in a secondary way. Accessories are often chosen to complement the outfit and enhance the look of the wearer. They can help a person express their uniqueness and individuality more fully.
Accessories are available in a variety of styles, colors and sizes. The 20th century saw the emergence of the phrase. The two main types of fashion accessories are wearables and wearables. Purses and purses, fans, parasols and umbrellas, purses, sticks and ceremonial swords are examples of traditional accessories.
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If there is an increase in the price of apples that causes consumers to purchase fewer pounds of apples and more pounds of oranges, the CPI will suffer from
a. substitution bias.
b. bias due to the introduction of new goods.
c. bias due to unmeasured quality change.
d. base-year bias.
e. none of the above.
The CPI will experience substitution bias if the price of apples drives consumers to buy more oranges and fewer pounds of apples.so the correc t option is (a).
Using a sample of typical commodities and regularly gathered prices, the CPI is a statistical estimate. Sub-indices and sub-sub-sub-indices can be computed for numerous categories and subcategories of products and services. The overall index is then created by combining these sub-indices and sub-sub-sub-indices, with weights indicating their proportions in the total of the consumer expenditures covered by the index. It's one of the various price indexes that are calculated by most national statistics agencies. A CPI can be used to regulate prices, deflate monetary amounts to reflect changes in real values, and index (i.e., make up for the impact of inflation) the real value of wages, salaries, and other financial compensation.
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Eamon does not understand how his manager, Chanise, always knows how much of what product to order and how to schedule employee shifts. Studying theoretical management perspectives could help Eamon Multiple Choice understand the present. realize the meaning of Chanise's decisions. derive new ideas. develop principles to guide actions.
Answer:Realize the meaning of Chanise’s decisions
Explanation:
Studying theoretical management perspectives could help Eamon realize the meaning of Chanise's decisions.
To accomplish their objectives, businesses and organizations need good management. A company's business functions are organized and coordinated at various levels of management. You might want to find out more about what a manager does if you're interested in pursuing a career in management. In this article, we define management and analyze its distinctive features, goals, levels, and functions.
Management is the process of organizing a company's actions and resources to achieve certain objectives as effectively and efficiently as feasible. In management, efficiency is the ability to complete tasks effectively and economically.
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pritchett company reported the following year-end data: cash $ 15,000 short-term investments 5,000 accounts receivable (current) 8,000 inventory 20,000 prepaid (current) assets 6,000 total current liabilities 20,000 compute the (a) current ratio and (b) acid-test ratio.
The firm has a current ratio of 2.7.
A ratio of 1.4 exists between acid and test.
The liquidity of the company is measured by the current ratio and acid-test ratio. It shows if the entity can fulfill its present obligations.
Particulars Amount
Cash $15,000
Short-Term Investments $5,000
Accounts Receivables (Current) $8,000
Inventory $20,000
Prepaid (Current) Assets $6,000
Current Liabilities $20,000
To calculate the entity's total current assets, we must first compute its current ratio. The computation looks like this:
Cash $15,000
Short-Term Investments $5,000
Accounts Receivable $8,000
Inventory $20,000
Prepaid Assets $6,000
Total Current Assets $54,000
The firm has $54,000 worth of current assets in total.
The following formula is used to calculate the current ratio based on the number of current assets:
Current Ratio = (Current Liabilities / Current Assets)
CR = 54000 / 20000
Current Ratio = 2.7
The entity's current ratio is equal to 2.7.
As we previously discussed, the acid-test ratio solely takes into consideration the entity's short-term assets. The computation looks like this:
Acid-test Ratio = (Cash + Short-Term Investments + Current Receivables) / Current Liabilities
ATR = (15000 + 5000 + 8000) / 20000 = 28000 / 20000
Acid-test Ratio = 1.4
The Acid-Test Ratio is equivalent to 1.4.
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oakley, a freshman just starting college, hasn't decided on his major. he is looking into operations management and is also exploring job opportunities in this field. which of the following statements about jobs for operations management majors is most accurate? if he majors in operations management, oakley will
If he majors in operations management, Oakley will acquire skills and knowledge that are valuable to firms in both the manufacturing and service sectors.
What is the service industry?The tertiary sector, usually referred to as the service sector, is the third sector in a three-sector economy. This industry creates maintenance and repair, training, or consulting services rather than products. The teaching, nursing, cleaning, and tourism industries are a few examples of the service industry.
The benefits of the service sector are what?In addition to making more money, they also have safer jobs. Numerous indulgences are within their means, which raises their standard of living. Market Expansion: The tertiary sector raises the standard of the products that are produced in the primary sectors of the economy. In part because of the service sector, the manufacturing process has improved.
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When it comes to public goods like national defense, the __________ is a serious problem. because people who do not pay cannot (easily) be excluded from the consumption of the good.
A. Tax incidence
B. Free-rider program
C. Marginal propensity to consume
D. Common resource problem
When it comes to public goods like national defense, the Free-rider program is a serious problem. because people who do not pay cannot (easily) be excluded from the consumption of the good.
Which definition of public goods is most accurate?A good or service that is provided to all members of a society is referred to as a public good in economics. Governments often handle the administration of these services, and taxes are used to pay for them all. Law enforcement, national defense, and the rule of law are a few examples of public goods.
Give some instances of public goods.Almost everywhere, the government has a considerable impact on the provision of services including environmental and fire protection, infrastructure, education, and national defense. They are frequently referred to as "public goods."
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the statement of shareholders' equity discloses the changes in the shareholder equity accounts during the period from: (select all that apply.) multiple select question. other comprehensive income assets and liabilities investments by owners property, plant, and equipment distributions to owners net income
Income measure that accounts for all equity changes over the course of a time period aside from those brought on by owner investments and owner dividends.
Which financial statement contains information about changes in shareholders' equity?From the beginning balance through the end balance of the reporting period, the owner's equity statement shows changes in the company's equity. Among the modifications are earned profits, dividends, equity inflows, equity outflows, net losses, and other alterations.
Do owner investments affect the total amount of income?According to corporate financial reporting in the United States, comprehensive income (or comprehensive earnings) "includes all changes in equity over a period, with the exception of those resulting from investments by owners & distributions to owners."
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true/false. under the interstate land sales full disclosure act, a purchaser of subdivided lands who receives the property report before signing a contract for purchase has the right to cancel the contract
True. Under the Interstate Land Sales Full Disclosure Act (ILSFDA), a purchaser of subdivided lands who receives the property report before signing a contract for purchase has the right to cancel the contract.
The Interstate Land Sales Full Disclosure Act (ILSFDA) is a federal law that regulates the sale of subdivided land in interstate commerce.
The law requires developers to provide buyers with a property report containing detailed information about the land and the development, as well as a notice of the buyer's right to cancel the contract.
This means that if a purchaser of subdivided lands receives the property report before signing a contract for purchase, they have the right to cancel the contract. The ILSFDA aims to protect buyers from fraud and misrepresentation in the sale of subdivided land.
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The supported commander's _____ gives the Service components, supporting commands, and agencies a detailed OPLAN, and it formally tasks those involved to prepare for the operation.
O deliberate planningO Means O OPORDO Future plans
The supported commander's OPORD assigns formal responsibility for preparation to all parties involved and provides a detailed OPLAN to Service components, supporting commands, and agencies.
What is the commander's role during information collection?By deciding on the important information requirements and by using mission command to direct the operations process, commanders direct information collecting activities. Throughout the course of an operation, a commander uses understanding as the starting point to envision, describe, direct, lead, and assess.In order to guarantee that the right amount of support is given to assigned or attached forces in order to achieve mission objectives, a CCDR may direct one of four predetermined kinds of support over them. These include all-around help, assistance from both parties, close assistance, and direct assistance.The supporting commander grants the supported commander access to his or her resources within the constraints and priorities set out by the creating authority. The supporting commander should dispatch a liaison to the supported commander to aid in planning efforts and guarantee shared situational knowledge.To Learn more About supported commander's refer TO:
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assume a binding price floor on an agricultural product is removed, which of the following should happen? (1 point)
Quantities requested and supplied will change when the government eliminates a legally binding price floor.
What is Binding Price ?A binding price floor elevates a good's price over the equilibrium price, as we've previously observed. As a result, there will be less demand and more supply. A excess of items will be available on the market since supply will exceed demand.
When the price floor is placed above the market equilibrium price, a binding price floor results. When a price floor is set at this level, there is a surplus since more goods are supplied at that price than are requested.
When a price ceiling is established below the market equilibrium price, a binding price ceiling results. Because there is a scarcity at the price limit, a legally imposed price cap will cause one.
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