If the Government Were to Intervene and Set the Price

question 100

Multiple Choice

If the government were to intervene and set the price of a dozen eggs above the market price,then we would expect,relative to the market outcome,

• A)an increase in the number of eggs people want to buy and an increase in the number of eggs farmers want to sell.
• B)an increase in the number of eggs people want to buy and a decrease in the number of eggs farmers want to sell.
• C)a decrease in the number of eggs people want to buy and an increase in the number of eggs farmers want to sell.
• D)a decrease in the number of eggs people want to buy and a decrease in the number of eggs farmers want to sell.

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Definitions:

Cyclical Movement

Fluctuations in business activity experienced over time, usually tied to economic cycles.

Random Variation

The unpredictable changes in data that do not follow a recognizable pattern, often due to random effects or causes.

Moving Averages

A method used in time series analysis to smooth out short-term fluctuations and highlight long-term trends by averaging data points over specific periods.

Exponential Smoothing

A method used in time series forecasting that applies decreasing weights to past observations.