Consider the following demand and supply schedules for some agricultural commodity.
TABLE 5-2
-Refer to Table 5-2.Consider the market-clearing equilibrium.If the government then imposes a production quota of 500 units,the price of this commodity will ________ relative to the free-market equilibrium price.
A)remain unchanged
B)rise by $20
C)fall by $20
D)rise by $40
E)fall by $40

Question

Consider the following demand and supply schedules for some agricultural commodity.
  TABLE 5-2
-Refer to Table 5-2.Consider the market-clearing equilibrium.If the government then imposes a production quota of 500 units,the price of this commodity will ________ relative to the free-market equilibrium price.
A)remain unchanged 
B)rise by $20 
C)fall by $20 
D)rise by $40 
E)fall by $40

Quizplus · Accepted Answer

The Answer of Consider the following demand and supply schedules for some agricultural commodity.
  TABLE 5-2
-Refer to Table 5-2.Consider the market-clearing equilibrium.If the government then imposes a production quota of 500 units,the price of this commodity will ________ relative to the free-market equilibrium price.
A)remain unchanged 
B)rise by $20 
C)fall by $20 
D)rise by $40 
E)fall by $40

Consider the Following Demand and Supply Schedules for Some Agricultural