If the Equilibrium Price of Corn Is 20 Cents an Ear

question 180

Multiple Choice

If the equilibrium price of corn is 20 cents an ear and the government imposes a floor of 30 cents an ear,the price of corn will ______________________.

• A)increase to 30 cents
• B)remain at 20 cents
• C)rise to about 25 cents
• D)be impossible to determine

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Definitions:

Wage And Price Controls

Government-imposed restrictions on the levels at which wages and prices can be set, usually to curb inflation.

Private And Public Insurance

Systems of insurance provided by private entities and government to offer financial protection against various risks.

U.S. Total Health Spending

Refers to the total public and private expenditure on health care services and products in the United States, measured annually.

Health Care Costs

The total expenditures required for services to prevent, diagnose, treat, or manage illnesses and conditions.