Suppose in a Market with Q^d = 100 - 5P

question 60

Multiple Choice

Suppose in a market with Q^d = 100 - 5P and Q^s = 5P, the government imposes a price floor of $15. If the government is required to purchase any excess supply at the price floor, how much will the government have to pay to purchase the excess in this market?

• A) Nothing; there is no surplus
• B) $1,000
• C) $1,500
• D) $750

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Definitions:

Mirrored Reflection

The process of closely examining one's own thoughts, feelings, or actions, as if reflecting them in a mirror.

Unique Assimilation

The process of integrating new information into existing cognitive schemas in a way that is special to the individual.

Association Areas

Regions of the brain that integrate and process information from the sensory and motor areas to perform complex cognitive tasks.

Motor Areas

Regions of the brain involved in the planning, control, and execution of voluntary movements, predominantly located in the frontal lobes.