Solved

In the Following Graph, QS and QD Represent the Supply

Question 50

Multiple Choice

In the following graph, QS and QD represent the supply and the demand curves respectively. Refer to the graph to answer the question. In the following graph, Q<sub>S</sub> and Q<sub>D</sub> represent the supply and the demand curves respectively. Refer to the graph to answer the question.    If the minimum price of the good is set at £2, which of the following is likely to happen? A)  The minimum price will not affect quantity demanded or supplied as it is set above the equilibrium price. B)  The total quantity of the good bought and sold in the market will be equal to 200 units. C)  There will be a surplus of 200 units in the market. D)  The imports of the good will increase.
If the minimum price of the good is set at £2, which of the following is likely to happen?


A) The minimum price will not affect quantity demanded or supplied as it is set above the equilibrium price.
B) The total quantity of the good bought and sold in the market will be equal to 200 units.
C) There will be a surplus of 200 units in the market.
D) The imports of the good will increase.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents