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Which causes the price of grain from the plains to fall?
A surplus in crops
At a given price a surplus occurs when?
At a price that is too high a surplus will occur. This is because people value their money more than they value the marketed good.
What happens to price when a surplus exists?
Surplus means there will be excess supply, meaning demand will fall, and so will prices
Suppose the price of corn is 3.25 per bushel. is there a shortage or surplus of corn at that price?
there is a surplus
What is causes a surplus price ceiling or price floor?
A price floor can cause a surplus while a price ceiling can cause a shortage but not always.
Which causes the price of grain from the plains to fall?
A surplus in crops
At a given price a surplus occurs when?
At a price that is too high a surplus will occur. This is because people value their money more than they value the marketed good.
What happens to price when a surplus exists?
Surplus means there will be excess supply, meaning demand will fall, and so will prices
What is the definition of an effective price floor?
Government sets the minimum selling price and prices of goods are not supposed to fall below this price. This Causes Surplus and purchasers Overpay.
Suppose the price of corn is 3.25 per bushel. is there a shortage or surplus of corn at that price?
there is a surplus
What is causes a surplus price ceiling or price floor?
A price floor can cause a surplus while a price ceiling can cause a shortage but not always.
When there is a surplus of a product in a market?
You start to melt, your eyes come out and you start to feel sticky. Suddenly, you die!!
Occurs when supply outstrips demand?
surplus
How does the consumer surplus change as the equilibrium price of a good rises or falls?
As the equilibrium price of a good raises the producer surplus increases as well, and as the equilibrium price falls the producer surplus decreases accordingly.
When does shortage and surplus occur?
A shortage occurs when quantity demand exceeds quantity supplied. A surplus occurs when quantity supplied exceeds quantity demanded.
What describes the situation that occurs when the equilibrum quantity has been reached?
there is no surplus or shortage
What happens to consumer surplus if the price is above equilibrium?
When the price is above equilibrium, there is a surplus because supply is greater than demand. The price of the good will naturally decrease back to its equilibrium price where demand and suppy interesect, thus eliminating the surplus.
