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Sergeu [11.5K]
3 years ago
9

Suppose the government enacts a price floor on milk, which leads to a surplus in the market. How will the government then attemp

t to equalize supply and demand?
Business
1 answer:
Anna [14]3 years ago
3 0

Answer:

Price Floor led Excess Supply can be solved by : Preserving goods Buffer Stock ; or processing goods to increase their shelf life (in case of perishable goods like Milk)

Explanation:

Unregulated markets are at equilibrium where : market demand , market supply are equal ; and downward sloping demand curve , upward sloping supply curve intersect.

Price Floor is minimum mandated price set by government, below which a good can't be sold in the market. It is usually set above equilibrium price, to protect interest of sellers. Example : Minimum Support Price as minimum agricultural  goods price to protect interest of farmers, Given Milk Price floor case.

Price Floor creates artificially higher prices ; so increases supply, decreases supply & hence creates Excess Supply. Government can solve this excess supply by preserving stock supply for contingent times , eg -  maintaining buffer stock. If the good is of perishable nature, as given milk case : it should be processed further to increase its shelf life, eg - cheese, such that the stock supply can be released at a slower pace.

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Read 2 more answers
Massena Corporation reported the following data for the month of February:
Elodia [21]

Answer:

$186,700

Explanation:

The computation of adjusted cost of goods sold is shown below:-

Before that we need to do the following calculations

Raw material consumed = Beginning raw material + Raw material purchases - Ending raw materials - Raw materials included in  manufacturing overhead costs  as indirect materials

= $40,000 + $63,000 - $24,000 - $5,000

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Total manufacturing cost = Beginning work in progress + Raw material consumed + Direct labor cost + Manufacturing overhead cost - Ending work in progress

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Unadjusted Cost of goods sold = Raw materials + Total manufacturing cost - Ending finished goods

= $50,000 + $201,700 - $72,000

= $179,700

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6 0
2 years ago
a customer has invested 20000 in a variable annuity. in the first year nav increases to 21100 at what rate wsill 1100 gain be ta
rjkz [21]

Answer: 0%

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With the variable annuity, the gains/earnings will be tax-deferred and the customer will only have to pay taxes when they withdraw the contributions.

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3 years ago
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Answer:

The loanable funds supply curve (S1) will not shift.

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3 0
3 years ago
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