Suppose the Government Has Imposed a Price Floor on the Market

question 33

Multiple Choice

Suppose the government has imposed a price floor on the market for soybeans.Which of the following events could transform the price floor from one that is not binding into one that is binding?

• A)Farmers use improved,draught-resistant seeds,which lowers the cost of growing soybeans.
• B)The number of farmers selling soybeans decreases.
• C)Consumers' income increases,and soybeans are a normal good.
• D)The number of consumers buying soybeans increases.

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Definitions:

Lower Specification Limit

The minimum acceptable limit for a characteristic or parameter of a product, below which the product is considered defective or unacceptable for use.

Measures Of Capability

Statistical techniques used to assess the ability of a process to meet specified performance standards.

Process Control System

An integrated system of technologies and practices used to manage and regulate industrial processes to maintain consistency and quality.

Sample Mean Chart

A type of control chart used to monitor the central tendency of a process over time by plotting the mean of each sample drawn from the process.