Use the Following Table to Answer the Following Questions

question 154

Multiple Choice

Use the following table to answer the following questions.
Market for Corn

-If the price floor for corn is set at $5.00,what amount and type of disequilibrium will be present in the market for corn?

• A) There will be no shortage or surplus.
• B) There will be a shortage of 103,000.
• C) There will be a surplus of 103,000.
• D) There will be a surplus of 223,000.
• E) There will be a surplus of 120,000.

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Definitions:

Mixed Strategies Equilibrium

is a concept in game theory where each player in a game chooses a combination of actions and their associated probabilities to maximize their utility under uncertainty.

Equilibria

The state of balance in a market or other system where supply and demand are matched, and there is no tendency to change.

Dominant Strategies

In game theory, a strategy that is the best choice for a player, regardless of what the opposing player chooses.

Annual Profit

Annual profit is the financial gain a company or individual achieves in a fiscal year after all expenses, taxes, and costs have been subtracted from total revenue.