Exhibit 4-10 Supply and Demand Data for Apricots Which

question 240

Multiple Choice

Exhibit 4-10 Supply and demand data for apricots Which of the following would occur if the government sets a price floor of $4 in the market shown in Exhibit 4-10?

• A)There would be a shortage of apricots.
• B)Buyers would not purchase all of the apricots that are grown.
• C)Buyers would purchase more apricots than are currently being supplied.
• D)Farmers would reduce the number of acres allocated to the growing of apricots.

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Definitions:

Higher Profits

An increase in the amount of money that is left after all operating expenses, taxes, and costs have been subtracted from total revenue.

Resource Suppliers

Entities or individuals that provide the essential inputs required for the production of goods or services.

Allocation Of Resources

Allocation of resources refers to the process of distributing available resources among various competing needs and uses in an economy to maximize efficiency and welfare.

Public Interest

The welfare or well-being of the general public, often used as a guideline for determining policy related to law, governance, and community health.