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Ira Lisetskai [31]
3 years ago
8

The government of Paulaville decides to set prices of wheat. Calculate the amount of the shortage or surplus if the government s

ets a price floor at $2.
Business
1 answer:
ololo11 [35]3 years ago
7 0

Answer:

I have uploaded the picture with the relevant information below.

Explanation:

We can see in this picture that the market equilibrium is met at a price of $5, thus, $5 is the equilibrium price, because demand and supply are both 125 at this point.

If the govenment sets a price floor of $2, there will be no effect, because the price floor is non-binding.

A non-binding price floor is a minimum price set by the government that is actually lower that the equilibrium market price. In this case, the price of the market will be allowed to go to $5, and reach equilibrium, so the policy osf setting the $2 price floor will have no effect.

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Answer:

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3 years ago
For each of the following, compute the future value (Do not round intermediate calculations and round your final answers to 2 de
snow_lady [41]

Explanation:

The computation of the future value is shown below:

As we know that

Future value = Present value × (1 + interest rate)^number of years

In the first case,

Future value = $2,050 × (1 + 0.12)^12

                     = $2,050 × 3.895975993

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In the second case,

Future value = $8,352 × (1 + 0.10)^6

                     = $8,352 × 1.771561

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In the third case,

Future value =  $72,355× (1 + 0.11)^13

                     = $72,355 × 3.883280163

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In the fourth case,

Future value = $179,796 × (1 + 0.07)^7

                     = $179,796 × 1.605781476

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3 years ago
What is at saturated market like for sellers?
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