The Following Table Shows the Demand For,and Supply Of,soya Milk

question 100

Multiple Choice

The following table shows the demand for,and supply of,soya milk in a particular market (the quantities are in thousands of liters per day) :

-Refer to the above information to answer this question.Suppose that the government introduces an effective price ceiling which is 20 cents different from the equilibrium price.What will be the result?

• A)A surplus of 6.
• B)A surplus of 12.
• C)A surplus of 18.
• D)A shortage of 12.
• E)140 would be purchased.

Recognize the conditions necessary for effective price discrimination.

Differentiate between various examples and non-examples of price discrimination.

Interpret economic models and figures to assess market outcomes in monopolistic settings.

Grasp the historical and legal context of antitrust laws and regulations in preventing monopolistic practices.

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Definitions:

International Trade

The exchange of goods, services, and capital across international borders or territories, driven by economic motives like gaining access to new markets or acquiring resources.

Unilateral Approach

A strategy or action taken by a single nation or entity independently, without coordination with others.

Free Trade

Free Trade is a policy where governments do not discriminate against imports or interfere with exports, allowing goods to move freely between countries.

North American Free Trade Agreement

A trade agreement between Canada, Mexico, and the United States designed to reduce trading costs, increase business investment, and help North America be more competitive in the global marketplace.