Exhibit 4-10 Supply and demand data for apricots $$\begin{array} { | c | c | c | }
\hline \begin{array} { c }
\text { Bushels demanded } \
\text { per month }
\end{array} & \begin{array} { c }
\text { Price per } \
\text { bushel }
\end{array} & \begin{array} { c }
\text { Bushels supplied } \
\text { per month }
\end{array} \
\hline 50 & \$ 5 & 80 \
55 & 4 & 75 \
60 & 3 & 70 \
65 & 2 & 65 \
70 & 1 & 55 \
\hline
\end{array}$$
-In Exhibit 4-10, assume that the government initially sets a price floor of $4 for apricots, and then removes the $4 price floor. What effect will this price change have?

Question

Exhibit 4-10 Supply and demand data for apricots $$\begin{array} { | c | c | c | } 
\hline \begin{array} { c } 
\text { Bushels demanded } \
\text { per month }
\end{array} & \begin{array} { c } 
\text { Price per } \
\text { bushel }
\end{array} & \begin{array} { c } 
\text { Bushels supplied } \
\text { per month }
\end{array} \
\hline 50 & \$ 5 & 80 \
55 & 4 & 75 \
60 & 3 & 70 \
65 & 2 & 65 \
70 & 1 & 55 \
\hline
\end{array}$$
-In Exhibit 4-10, assume that the government initially sets a price floor of $4 for apricots, and then removes the $4 price floor. What effect will this price change have?

Quizplus · Accepted Answer

Removing the price floor of $4 will allow the price to fall to the equilibrium price of $2, where quantity demanded equals quantity supplied at 65 bushels. This will result in a decrease in the quantity supplied from 75 to 65 bushels.

Exhibit 4-10 Supply and Demand Data for Apricots -In Exhibit 4-10, Assume That the Government Initially Sets a |