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Figure: The Shrimp Market
-(Figure: The Shrimp Market)Use Figure: The Shrimp Market.If the government wants to limit shrimp sales to 500 kilograms,it can impose a price:
A) floor of $20.
B) floor of $10.
C) ceiling of $5.
D) floor of $15.

Question

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Figure: The Shrimp Market 
-(Figure: The Shrimp Market)Use Figure: The Shrimp Market.If the government wants to limit shrimp sales to 500 kilograms,it can impose a price:
A) floor of $20. 
B) floor of $10. 
C) ceiling of $5. 
D) floor of $15.

Quizplus · Accepted Answer

A floor price of $15 would limit the quantity sold to approximately 500 kilograms, the goal of the government. At this price, the quantity demanded by consumers is 500 kilograms and the quantity supplied by producers is also 500 kilograms. If the price were higher (choices A and B) or lower (choice C), the quantity supplied or demanded would be different, resulting in either a surplus or a shortage of shrimp.

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