Figure 9.4.2
-Refer to Figure 9.4.2 above. The government policy pictured is:
A) a price ceiling of $20.
B) a price support of $20.
C) a price ceiling of $15.
D) a price support of $15.
E) a quota of 600.

Question

Figure 9.4.2
-Refer to Figure 9.4.2 above. The government policy pictured is:
A) a price ceiling of $20. 
B) a price support of $20. 
C) a price ceiling of $15. 
D) a price support of $15. 
E) a quota of 600.

Quizplus · Accepted Answer

A price support of $20 is indicated by a government policy that sets a minimum price for a good or service, in this case, $20, ensuring that the market price cannot fall below this level. This is typically done to protect producers, ensuring they receive a minimum income for their products.

Figure 9.4.2 -Refer to Figure 9.4.2 Above. the Government Policy Pictured Is