______________ are enacted when discontented sellers, feeling that prices are too low, appeal to legislators to keep prices from falling.

Question

BlackTom AI · Accepted Answer

The question presents a scenario involving discontented sellers who feel prices are too low and appeal to legislators to prevent prices from falling. This describes a government intervention designed to keep prices from dropping below a certain level.

In economic terms, such interventions are price floors, which set a minimum allowable price for a good or service. When implemented, price floors aim to prevent prices from falling to equilibrium or below, thereby supporting sellers who would otherwise receive lower prices in a free market.

If there had been multiple choices, you would look for the option that characterizes a policy setting a minimum price. By contrast, price ceilings would set a maximum price (to prevent prices from rising too high), which is the opposite of what the scenario describes. Other potential distractors could include phrases like 'price controls' in a general sense, but the specific mechanism described—keeping prices from falling—points to price floors as the precise term.

In short, the act of enacting measures to keep prices from falling aligns with the concept of price floors, reflecting government intervention to maintain minimum prices for sellers.

经济&202 33295 第三章测验

______________ are enacted when discontented sellers, feeling that prices are too low, appeal to legislators to keep prices from falling.

View Explanation

Log in for full answers

Similar Questions

MC Qu. 98 A government-imposed price floor has what ef... A government-imposed price floor has what effect on efficiency?

Figure 6-9Refer to Figure 6-9.In this market, a minimum wage of $7.00 creates a labor

Figure 6-9Refer to Figure 6-9.In this market, a minimum wage of $7.00 creates a labor

The graph above shows the demand and supply of honey. There are now some areas shaded.The government imposes a price floor of $12.00 per unit of honey.Which of the shaded area(s) of the graph represents Producer Surplus when there is a price floor.

The graph above shows the demand and supply of honey. The government imposes a price floor of $12.00 per unit of honey.Determine the quantity supplied.

Use the following information to answer the next question. Market for flat-screen TVs: Demand: Qd = 2,600 – 5P Supply: Qs = –1,000 + 10P What would be the quantity demanded if a price floor is set at $400?

Refer to the accompanying graph to answer the next question. At the binding price floor, by how much would the quantity demanded change from the market equilibrium?

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler