1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Sidana [21]
3 years ago
14

A minimum wage is an example of a price floor or minimum price that must be paid. If effective, such a price floor would be ____

_ the market price and would lead to a _____ .
Business
1 answer:
valkas [14]3 years ago
3 0

Answer:

If effective, such a price floor would be <u>above</u> the market price and would lead to a <u>excess supply</u>.

Explanation:

A price floor can be described as a price control in which the minimum price to be charged for goods and services is imposed by a government or a group.

For a price floor to be effective and binding, it has to be set above the market or equilibrium price. This is because a price floor will neither be effective nor nonbinding when it set below the equilibrium price.

Any price above the equilibrium or market price creates or leads to excess supply. Excess supply is a situation whereby quantiy of commodity supplied is more than the quantity demanded of the commodity.

Based on the above explanation, if effective, such a price floor would be <u>above</u> the market price and would lead to a <u>excess supply</u>.

You might be interested in
Suppose we play the following game based on tosses of a fair coin. You pay me $10, and I agree to pay you $n2 if heads comes up
storchak [24]

Answer:

$4

Explanation:

A geometric distribution is commonly known as a probability distribution that is used for the total number of Bernoulli trials computed till there is a successful trial. Therefore:

If X is the toss with the first head, then, it is a geometric distribution with p = 0.5. The payable amount (A) will be:

A = E(X^{2}) = (1+0.5)/(0.5)^2 = 1.5/0.25 = 6

If $10 is used to play the game, the loss will be 10-6 = $4 per game.

8 0
3 years ago
What is guaranteed by an implied warranty for all products?
Ratling [72]
A. that the product will work as described for a reasonable amount of time
8 0
2 years ago
Which of the following is an example of the law of supply?1. The price of gum has increased so producers are making more gum. 2.
polet [3.4K]

Answer:

Option 1 is correct.

Explanation:

Law of supply indicates that there is a positive relationship between the price of a commodity and the quantity supplied of that commodity. This means that an increase in the price of a commodity then as a result there is an increase in the quantity supplied of that commodity because it will become more profitable for the producers to produce more and supply more.

3 0
2 years ago
Efficient portfolios of N risky securities are portfolios that Multiple Choice have the lowest standard deviations and the lowes
Kamila [148]

Answer: Have the highest rates of return for a given level of risk.

Explanation:

Efficient Portfolios offer the highest rates of return for a given level of risk or the lowest risk for a given return. This means that they always maximise returns for a given level of risk which makes them very attractive to the point that they are labeled 'The Optimal Portfolio'.

It is argued at at this level, including any other Investment vehicle or rather diversifying the portfolio further cannot be done unless more risk is accepted. This is the point where the portfolio can get no less riskier for the return it offers.

7 0
2 years ago
How does risk influence the rate of interest?
Andru [333]

Answer:

Interest rate risk directly affects the values of fixed income securities. Since interest rates and bond prices are inversely related, the risk associated with a rise in interest rates causes bond prices to fall and vice versa. Interest rate risk affects the prices of bonds, and all bondholders face this type of risk.

Explanation:

Hope this helped Mark BRAINLEST!!

3 0
3 years ago
Other questions:
  • In a market economy the three basic economic question are most often answered by which two groups?
    14·1 answer
  • True or False: A tax cut is less likely to change the composition of labor demand than a government spending increase.
    10·1 answer
  • Giving brainliest for CORRECT awnser.
    15·1 answer
  • POINTS!!!!!!!!!!!!!! BRAINLIEST AND 20+ POINTS!!!
    7·2 answers
  • Armstrong industries has a contribution margin of $300,000 and a contribution margin ratio of 30%. how much are total variable c
    12·1 answer
  • On January 1, 2021, the Excel Delivery Company purchased a delivery van for $153,000. At the end of its five-year service life,
    9·1 answer
  • Financial statements are reports on the financial performance of organizations. they provide data on
    15·1 answer
  • Bravo inc owns 20,000 of the 40,000 outstanding shares of bello, inc. common stock. During 2021, Bello earns 1,200,000 and pays
    8·1 answer
  • Renfro Corporation’s bonds will mature in 10 years. The bonds have a face value of $1,000 and an 8% coupon rate, paid semiannual
    14·1 answer
  • IRAC Briefing
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!