Figure 9.2.1
-Refer to Figure 9.2.1 above. The result of the minimum imposed price:
A) increases the number of producers and increases the number of consumers in the market.
B) increases the number of producers and decreases the number of consumers in the market.
C) decreases the number of producers and increases the number of consumers in the market.
D) decreases the number of producers and decreases the number of consumers in the market.

Question

Figure 9.2.1
-Refer to Figure 9.2.1 above. The result of the minimum imposed price:
A) increases the number of producers and increases the number of consumers in the market. 
B) increases the number of producers and decreases the number of consumers in the market. 
C) decreases the number of producers and increases the number of consumers in the market. 
D) decreases the number of producers and decreases the number of consumers in the market.

Quizplus · Accepted Answer

The minimum imposed price is above the equilibrium price, so it will decrease the quantity demanded and increase the quantity supplied. This will lead to a decrease in the number of consumers and a decrease in the number of producers.

Figure 9.2.1 -Refer to Figure 9.2.1 Above. the Result of the Minimum