Figure 9.7
-Refer to Figure 9.7. After the policy was implemented, the quantity traded became
A) 1000.
B) 2000.
C) 3000.
D) 4000.
E) between 2000 and 4000, but the amount depends upon producers' reactions, which are uncertain.

Question

Figure 9.7
-Refer to Figure 9.7. After the policy was implemented, the quantity traded became
A) 1000. 
B) 2000. 
C) 3000. 
D) 4000. 
E) between 2000 and 4000, but the amount depends upon producers' reactions, which are uncertain.

Quizplus · Accepted Answer

The policy created a price floor of $5, which means producers cannot sell their products below this price. At this price, the quantity demanded is 2000, while the quantity supplied is 4000. Therefore, the quantity traded is the smaller of these two quantities, which is 2000.

Figure 9.7 -Refer to Figure 9.7. After the Policy Was Implemented, the Implemented