Figure 6-6

-Refer to Figure 6-6.Which of the above figures represent a proper price control for the wheat market

Question

Figure 6-6

-Refer to Figure 6-6.Which of the above figures represent a proper price control for the wheat market

Quizplus · Accepted Answer

Panel (b) shows a proper price control for the wheat market, where the price is set at the equilibrium point of supply and demand. Panels (a) and (c) show price ceilings and floors, respectively, which can lead to shortages or surpluses. Panel (d) shows a price above equilibrium, which could lead to a surplus.

Figure 6-6 -Refer to Figure 6-6.Which of the Above Figures Represent a 6-6.Which