Find the Relative Maxima and Relative Minima, If Any, of the Function

question 165

Multiple Choice

Find the relative maxima and relative minima, if any, of the function.

• A)Relative minimum: g(2) = 2, Relative maximum: g(0) = 6
• B)Relative maximum: g(2) = - 6, No relative minima
• C)No relative maxima, Relative minimum: g(2) = - 6
• D)No relative maxima or minima.

Describe the impact of government interventions, such as price controls, on market equilibrium.

Identify the conditions under which surpluses and shortages occur in the market.

Recognize the effects of supply and demand shifts on market equilibrium.

Explain the role of prices as a rationing mechanism in market economies.

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Definitions:

Price Floor

A government or group-imposed price control that sets the lowest legal price a commodity can be sold at. It is used to ensure producers receive a minimum price often in agriculture.

Shortage/Surplus

Shortage occurs when demand exceeds supply, while surplus occurs when supply exceeds demand.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price level in a market.

Quantity Supplied

The quantity of a product or service suppliers are prepared to offer for sale at a specific price.