Suppose a Binding Price Floor on Sparkling Wine Is Proposed

question 68

Multiple Choice

Suppose a binding price floor on sparkling wine is proposed by the Health Minister of the country of Vinyardia.What will be the likely effect on the market for sparkling wine in Vinyardia?

• A)Quantity demanded will decrease, quantity supplied will increase, and a surplus will result.
• B)Quantity demanded will increase, quantity supplied will decrease, and a surplus will result.
• C)Quantity demanded will decrease, quantity supplied will increase, and a shortage will result.
• D)Quantity demanded will increase, quantity supplied will decrease, and a shortage will result.

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Definitions:

Descartes

René Descartes was a French philosopher, mathematician, and scientist who is considered a pivotal figure in the development of modern philosophy and analytical geometry.

God Existed

A statement that affirms the existence of a supreme being or deity.

Tabula Rasa

(Latin.) In Locke, the “blank tablet” metaphor of the mind, in opposition to the doctrine that there are innate ideas. In other words, the mind is a “blank” at birth, and everything we know must be “stamped in” through experience.

Innate Ideas

Innate Ideas are concepts or knowledge presumed to be present in the mind at birth, not derived from experience but innate in the human mind.