PracticeProblems - -clearing price is $1.50 per dozen Now...

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Practice Problems 1) If a binding price ceiling is in place and if the demand for the product shifts outward, one consequence would be A) the quantity exchanged would increase. B) an increase in the amount of excess supply. C) the quantity exchanged would remain constant. D) the quantity exchanged would decrease. E) a decrease in the amount of excess demand. 1) 2) Suppose the demand for eggs is inelastic and that the market
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Unformatted text preview: -clearing price is $1.50 per dozen. Now suppose the government imposes a minimum price of $2.00 per dozen. Why might the government implement such a policy? A) to decrease tax revenues from egg farmers. B) to increase the incomes of egg farmers. C) to make consumers better off. D) to reduce excess supply in the egg market. E) to increase excess demand in the egg market. 2) 1...
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