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Question: 12. A price floor: results in an excess demand. holds the price below the market clearing price. ...

Show transcribed image text 12. A price floor: results in an excess demand. holds the price below the market clearing price. C. results in an excess supply market clearing price. creates a shortage by holding the price below the E. ereates a holding the price above the market clearing price. surplus by Use the following graph for questions 13 and 14. Price Quantity 13. Three prices are indicated on the vertical axis: A, B, and c.which f the following statements are correct? I. Price A is the equilibrium price. ll. Price B is a price support. Ill. Price C would create a shortage. I only B only only -D and ill only E. Il and Ill only 14. If the market price is at point A, what can you expect? A. The price will fall to point Cas sellers put their excess inventory on sale. B The price will stay at point A. C. The price will fall to point Bas sellers put their excess inventory on sale. D. The price will fall to point B, then increase again to point A. E. The price will fall to point B, then fall even further to point C. 15. lf the demand for bottled water increases: A, the equilibrium price and quantity increase. C. the equilibrium price increases, and the equilibrium quantity decreases D, the equilibrium price decreases, and the equilibrium quantity increases. E. the equilibrium price increases, but the change in equilibrium quantity is indeterminant. o 2009 K12 Inc. rights reserved.

12. A price floor: results in an excess demand. holds the price below the market clearing price. C. results in an excess supply market clearing price. creates a shortage by holding the price below the E. ereates a holding the price above the market clearing price. surplus by Use the following graph for questions 13 and 14. Price Quantity 13. Three prices are indicated on the vertical axis: A, B, and c.which f the following statements are correct? I. Price A is the equilibrium price. ll. Price B is a price support. Ill. Price C would create a shortage. I only B only only -D and ill only E. Il and Ill only 14. If the market price is at point A, what can you expect? A. The price will fall to point Cas sellers put their excess inventory on sale. B The price will stay at point A. C. The price will fall to point Bas sellers put their excess inventory on sale. D. The price will fall to point B, then increase again to point A. E. The price will fall to point B, then fall even further to point C. 15. lf the demand for bottled water increases: A, the equilibrium price and quantity increase. C. the equilibrium price increases, and the equilibrium quantity decreases D, the equilibrium price decreases, and the equilibrium quantity increases. E. the equilibrium price increases, but the change in equilibrium quantity is indeterminant. o 2009 K12 Inc. rights reserved.