Suppose the Equilibrium Price of Carrots Is $1

question 84

Multiple Choice

Suppose the equilibrium price of carrots is $1. The price floor instituted by the government is $1.50. Based on this information, which of the following would you expect to take place in the market?

• A) We would expect to see a surplus of carrots.
• B) There would be a shortage of carrots.
• C) Farmers would switch from growing carrots to growing potatoes.
• D) The price floor would have no impact on the market because it is higher than equilibrium price.

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Definitions:

Avogadro's Law

States that equal volumes of gases at the same temperature and pressure contain the same number of molecules.

Equal Volumes

Describes when two or more substances occupy the same amount of space, despite possibly having different shapes or forms.

Balanced Chemical Equation

A symbolic representation of a chemical reaction in which the number of atoms for each element is equal on both the reactant and product sides.

Coefficients

Numerical or constant multipliers that are placed before variables in equations to denote how many units of the variable are involved.