If the equilibrium price of corn is $3 a bushel and the government imposes a floor of $4 a bushel,the price of corn will _______________________.

Name: If the equilibrium price of corn is $3 a bushel and the government imposes a floor of $4 a bushel,the price of corn will _______________________.
Brand: Quizplus
Rating: 4.8 (59 reviews)

Question

Quizplus · Accepted Answer

When the government imposes a price floor above the equilibrium price, the market price will increase to the level of the price floor, in this case, $4 a bushel.

If the Equilibrium Price of Corn Is $3 a Bushel