If the government removes a binding price floor from a market, then the price paid by buyers will (A) increase, and the quantity
sold in the market will increase. (B) increase, and the quantity sold in the market will decrease. (C) decrease, and the quantity sold in the market will increase. (D) decrease, and the quantity sold in the market will decrease.
Binding price ceiling is the defined or described as the one which happen or occur when the government fixes or state the required or needed price on the goods or products and the price will be set at a price below the equilibrium. It is done as the government want that the prices will not rise or increase above the set price and this price binds the market for that good or product.
So, if the government remove the biding price from the market, then the price which is paid by the buyers will increase as price could rise and which will return in the quantity sold will also increase in the market.
Explanation: If the quota is a lower value than the current level of japan sales, the equilibrium price will go up, because the supply will be lower than the demand pushing the price to rise and incentivizing other car suppliers to increase the offer. If the quota is higher than the current sales of Japanese cars, and if the demand keeps pushing the supply to go up, the market share of Japanese car will grow until meeting the quota. The price will go up until achieve equilibrium again. After that point, the market supply will be based on changes in the market no related to Japanese imports.
because the shortage of an item means more people want so that's a great time to earn some extra cash. same thing when they have. too much of an item but instead they lower the price so more people buy it.
The correct answer is: the supply of the greeting cards is less elastic than the one of the roses.
Explanation:
To begin with, the elasticity show how much the price and the quantity are related by indicating the variation that happens to one of them when the other changes. Therefore that the supply of the greeting cards is less sensitive to price because when the quantity demanded increased the price did not change as much as the roses due to the fact that the sellers were not encourage as much as the sellers of the roses to produce more and therefore to increase the price of the cards. So to sum up, when the price changed the sellers were not encourage to increase the production of the cards as much as the production of the roses because of its elasticity.
