the government believes that the equilibrium price is too low and tries to help almond growers by settinga price floor at Pf. Wh
at are represents the portion of consumer surplus that have been transsferred to produce surplus as a result of the price floor.
1 answer:
Answer: D) B
Explanation:
The Producer Surplus refers to the area below the Price Floor but above the Supply Curve and left of the new Quantity supplied. It comprises of areas B and E.
Before the Price Floor was introduced, area A, B and C were the Consumer Surplus as they were above the price but below the Demand Curve.
After the Price Floor was introduced however, area B has become a Producer Surplus.
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Answer:
The answer is "Choice D".
Explanation:
Please find the numbering of the choices in the attached file.
In this question, when this forward price is too low in comparison to both the location cost of production, the dealer must also reduce their assets throughout the spot market and purchase it at the potential price. Its trader should reduce the asset, reinvest the owner-occupants profits on a risk-free basis, establish a long-term loan to buy the asset with one year.
