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Sav [38]
3 years ago
11

Price floors and price supports set a minimum price below which a good or service cannot be sold. Minimum wage laws and agricult

ural price supports are common examples of such price controls. When price floors are used to keep prices above free-market levels in the agricultural industry, which of the following outcomes are common? Check all that apply.
A. Overinvestment in the agricultural industryB. A decrease in the future supply of agricultural goodsC. A surplus of agricultural goodsD. A problem of disposal of surplus agricultural goods
Business
1 answer:
Sergeu [11.5K]3 years ago
7 0

Answer:

C. A surplus of agricultural goods

Explanation:

Un-intervened markets are at equilibrium where Market Demand = Market Supply. Market Supply curve is upward sloping, due to price - supply direct relationship. Market demand curve is downward sloping, due to price - demand inverse relationship. Both curves intersect at equilibrium.

Price floor is minimum mandated price by government, below which a good cant be sold in the markets. It is usually set above market price, to protect the interest of sellers. Eg : Minimum Support price, of agricultural goods, set for protecting interests of sellers (farmers) from volatile prices.

This mandate set artificially high price : leads to supply being more than demand, as supply is directly & demand is inversely related to price. So, supply > demand implies that agricultural goods are at surplus in markets.

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Zoning Map Amendment is an official document showing that there is a change in the way the land or property is divided into zones within a district and also the way it is being used either for industrial, residential or business purpose.

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There was no contract since there was no mutual agreement on the shipping company.

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Risle Incorporated is a paper supply company. One of its largest customers is Allende Publishers, a publishing house that makes books. If Risle Incorporated decides to acquire and merge with Allende, the merger is most likely to be called a vertical merger.

<h3>What is vertical merger?</h3>

A vertical merger is the union of businesses that operate at various phases of the production process, such as raw materials, finished goods, and distribution. A merger between a steel manufacturer and an iron ore producer serves as an illustration.

Some characteristics of vertical merger are-

  • A vertical merger is when two or more businesses come together to provide various supply chain services for a single item or service.
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  • A vertical merger's primary goals are to gain market share, boost productivity, and maximize cost reductions in order to generate larger profits.
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To know more about vertical merger, here

brainly.com/question/9282351

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