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How much can a big bones sell?
Minimum price: 634; Market price: 667; Maximum price: 700.
What is minimum price legislation?
The minimum price legislation is the commodity sold at any price price below the one stated example government or authorities. The intention is to protect the supplier at times when the market id at equilibrium and price tends to fall (due surplus). To be effective, a minimum price must be set above prevailing current market equilibrium price. Also there should be no cheating.
How is price determined under imperfect market?
Remember under this market there's a government intervention.the Government determine the prices of the market by using the minimum(the minimum that the market can charge) and maximum wage(Maximum that the market can charge)
Is minimum wage a price floor or ceiling?
Price floor- Minimum wage, if above the market equilibrium then unemployment Price ceiling- rent control, so more people are able to live comfortably. but this can be negative when the too high of price is confused with the too low of supply.
How can one calculate producer surplus at equilibrium?
To calculate producer surplus at equilibrium, subtract the minimum price that producers are willing to accept from the market price. This will give you the area above the supply curve and below the market price, representing the producer surplus.
What is the minimum price of the share?
The minimum price of a share is typically called its "face value" or "par value." This is the nominal value assigned to a share by the company’s articles of incorporation and represents the lowest price at which a share can originally be issued to the public. For most Indian companies, this is often set at ₹10 or ₹1 per share, but the actual face value can vary based on what the company chooses at incorporation. When considering a purchase of 1000 shares, the absolute minimum investment would be: Minimum Investment = Face Value × 1000 Minimum Investment=Face Value×1000 For example, if a share’s face value is ₹10, then buying 1000 shares at face value would cost: 10 × 1000 = ₹ 10 , 000 10×1000=₹10,000 However, the price at which shares are traded in the market—known as the "market price" or "offer price"—is usually much higher than the face value. For example, Reliance Power’s face value was ₹10, but its offer price was around ₹430 per share at the time of its IPO. Thus, the minimum amount required to buy 1000 shares would be based on the current market price, not the face value, except during the initial public offering at face value. In summary: The face value is the minimum price for issuing a share, but market price determines what one actually pays for existing shares. For 1000 shares, the minimum possible price equals face value × 1000, but in practice one usually pays the prevailing market price.
What is the impact of a price floor on a market, and how does it result in deadweight loss as shown on the graph?
A price floor is a minimum price set by the government above the equilibrium price in a market. This can lead to an excess supply of goods, known as deadweight loss, because the price is higher than what consumers are willing to pay and producers are willing to sell at. This results in inefficiency and reduced overall welfare in the market.
Is a price floor a maximum or minimum price?
Minimum price Think floor is the bottom which is the minimum. Think ceiling is the top which is the maximum.
Why price ceiling and price floor is binding?
A price ceiling is binding when it is below the equilibrium price. It is the legal maximum price, so the market wants to reach equilibrium (which is above that) but can't legally. If it were above the equilibrium price it would not be binding because the market would reach equilibrium and the ceiling would have no effect. A price floor is binding when it is above the equilibrium price. You can use similar reasoning to that above. It is the legal minimum price. the market wants to reach equilibrium below that but can't legally.
How to calculate the producer surplus in a market?
To calculate the producer surplus in a market, subtract the minimum price that producers are willing to accept for a product from the actual price they receive for it. This difference represents the producer surplus, which is the benefit producers gain from selling their goods at a higher price than they were willing to accept.
Is price ceiling an example of the minimum wage?
No, a price ceiling is not an example of minimum wage. A price ceiling is a government-imposed limit on how high a price can be charged for a product, often intended to keep essential goods affordable. In contrast, minimum wage is a legal requirement that sets the lowest amount an employer can pay an employee for their labor. While both are forms of government intervention in the market, they apply to different contexts: price ceilings apply to goods and services, while minimum wage applies to labor.
What is mean by minimum export price?
Minimum Export Price is the minimum price at which the government buys the agricultural produce (wheat, Rice etc) from the farmers.
