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The supply and demand model predicts that a price floor will result?
Wiki User
∙ 9y ago
The supply and demand model that a price floor will result in is based on consumer want and need. A lower demand will result in lower market values for products.
Wiki User
∙ 9y ago
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A price floor will cause a large surplus when demand is and supply is?
A price floor will cause a large surplus when the demand is low and the supply is high. The floor is the lowest point at which something can be sold without losing money.
What happen if price floor is above equilibrium price?
In a competitive market, it will produce an excess of supply (for the floor price, supply is bigger than demand)
What if supply exceeds demand?
When supply exceeds demand, it is known as a surplus.Surpluses only occur among rational producers and consumers if a regulatory price floor is in effect (that is, the government mandates that the price of the good or service in question not go below a certain level). If no such regulation is in place, the price of the good or service will lower to the point where supply and demand are equal to one another.If the price of the good is lowered, then demand will increase.
What ways does government affect supply and demand?
1st way of government policy to affect demand/supply is through price ceilings and price floors. By price ceiling it means that goods have to be sold below this price and price floors means that goods have to be sold above this price set. When price is forced down, suppliers will supply less and consumers will demand for more causing shortage, vice versa, when price is high, supplier will provide more and consumer will demand less causing surplus. 1 such example is price floor on agricultural. 2nd way where government policy affect demand/supply is through enforcing or altering taxes, minimum wage rate, subsidies and so on. Removing tax and increasing minimum wage rate increases disposable income of consumers which ultimately increase demand of good for normal goods and decrease demand of good for inferior goods. Hence, increasing tax and decreasing minimum wage rate will have the opposite effect. Increasing subsidies for producers will reduce their cost of production which will increase the suppliers willingness and ability to produce goods and services. -- By Johan Chua Song Yi
Why is the demand curve negatively sloped?
The demand curve is negatively sloped to represent the declining marginal utility from consumption. At greater quantities of consumption each additional unit of a good consumed will yield relatively less utility, thereby reducing the marginal willingness to pay for that good.
What does the supply and demand model predict a price floor will result in?
supply and demand model predicts that a price floor will result in
A price floor will cause a large surplus when demand is and supply is?
A price floor will cause a large surplus when the demand is low and the supply is high. The floor is the lowest point at which something can be sold without losing money.
What happen if price floor is above equilibrium price?
In a competitive market, it will produce an excess of supply (for the floor price, supply is bigger than demand)
What if supply exceeds demand?
When supply exceeds demand, it is known as a surplus.Surpluses only occur among rational producers and consumers if a regulatory price floor is in effect (that is, the government mandates that the price of the good or service in question not go below a certain level). If no such regulation is in place, the price of the good or service will lower to the point where supply and demand are equal to one another.If the price of the good is lowered, then demand will increase.
What should be the discount for furniture floor samples?
Whatever discount it takes to move them. If the item is "a dog," and beat-up, then 40 or 50% off might be necessary. If it's an in-demand item and in excellent condition, but discontinued, maybe the retailer can get away with not discounting the price at all on the floor sample - the last one. It's all supply and demand. (Of course, few retailers are willing to sell a floor sample at any discount if the floor sample represents more in-stock items.)
What is one effect of a price floor?
A surplus of supply
Where is supply room in Counterfeit Island?
the supply room is in the mussem on the first floor to your far left
How high is the demand for architects?
"Get on the floor and shine my shoes, Boy!" >:D
Is Mr. Clean a good commercial floor cleaning supply?
Mr. Clean commercial floor cleaner is a great commerical floor cleaning supply. It is quick, easy to use, and afforable. If you would like more information you visit: http://www.mrclean.com/en_US/home.do.
What does divergent result in?
It results in sea floor spreading.
How do you supply water to the 3rd floor with out pumps?
To supply water to the 3rd floor without pump, you have to make the tank stand above the roof so water can run freely to all the floors without hitch
What ways does government affect supply and demand?
1st way of government policy to affect demand/supply is through price ceilings and price floors. By price ceiling it means that goods have to be sold below this price and price floors means that goods have to be sold above this price set. When price is forced down, suppliers will supply less and consumers will demand for more causing shortage, vice versa, when price is high, supplier will provide more and consumer will demand less causing surplus. 1 such example is price floor on agricultural. 2nd way where government policy affect demand/supply is through enforcing or altering taxes, minimum wage rate, subsidies and so on. Removing tax and increasing minimum wage rate increases disposable income of consumers which ultimately increase demand of good for normal goods and decrease demand of good for inferior goods. Hence, increasing tax and decreasing minimum wage rate will have the opposite effect. Increasing subsidies for producers will reduce their cost of production which will increase the suppliers willingness and ability to produce goods and services. -- By Johan Chua Song Yi
