How Can a Government Ensure All Producers Benefit from the Implementation

question 32

Multiple Choice

How can a government ensure all producers benefit from the implementation of a price floor?

• A) Guarantee to buy all excess supply
• B) Ration a certain quantity per consumer
• C) Ration a certain quantity per producer
• D) All of these are correct.

---

Definitions:

Price Discriminate

The practice of selling the same product or service at different prices to different customers, based on factors such as willingness to pay, market segment, or purchase location.

Demand (D)

The quantity of a particular good or service that consumers are willing and able to purchase at various prices during a certain period of time.

Marginal Revenue (MR)

The additional revenue that a firm gains from selling one more unit of a good or service.

Inelastic Segment

A portion of the demand curve where the price elasticity of demand is less than one, indicating consumers' insensitivity to price changes.