If the government sets a minimum price at which a good or service can be sold, it thereby creates?
C if they set a Maximum, then the answer would be A. price ceiling.
If a government uses a price floor and a price ceiling, explain the impact on resource allocation.?
There are binding and non-binding price floors - A non-binding price floor is below equilibrium price, therefore the price floor has no effect. A binding price floor does have an effect, the price floor is above the optimal price naturally set by the markets (or equilibrium) and market prices will hit that floor and be unable to drop any further - therefore there will be a surplus of the product. So some sellers are unable to sell the product. A price ceiling can be binding or non-binding depending on supply and demand for the product/commodity. When non-binding it has no effect but when supply decreases - the ceiling becomes binding, the prices do not rise but demand is still there - which means there is not enough supply to meet demand. The end result of that is a shortage.
[business] What is meant by a “binding price floor”?
Price floor is a regulation set in place where you have to sell a particular item for a minimum price.So if I am selling item A for 10 dollars and the government puts in place a price floor for 12 dollars, it is binding because I would have to raise my prices to be compliant with the minimum price of 12 dollars.But if I am selling item A for 15 dollars, and the government puts in place a price floor for 12 dollars. It is not binding because I am already selling it for more than the minimum price, and I do not have to make any changes to my price.The inverse is true for price ceilings.
How much weight can a mobile home floor hold without problems?
Your mobil home floor is capable of handling any normal household item....if that floor has never gotten wet. Normally, you will have 3/4" particle board sub-floor on 2 X 6 floor joists, very similar to stick built homes. If, however water damage exists, any weight at all will break through the particle board. Typically, water damage will occur under windows, doors and around bathroom fixtures. I know personally that a cubical security safe, of about 20 inches, and weighing 50 pounds sits perfectly on the floor of a mobil home I have. That is more weight per square inch than any bed, TV or household item might have.
Macroeconomics - Do producers tend to favor price floors or price ceilings? Why?
Price floors. Why stifle how much the market is willing to pay versus getting a minimum price for items no matter what the supply? Milk is a perfect example. There is an artificial floor thanks to an old USDA standard that will give producers a set amount of milk per gallon. There is no ceilings and allows milk to rise to $5 per gallon when supply is tight due to high exports to Australia.
Does anyone have a list of household items essential to start a new home?
We're moving into a new place and will have to start all over. Does anyone have a quick list reference of things we would need so that it becomes easy to go about buying. Just looking for something already existing as it would become a bit easy.
An effective price floor on wheat will:?
The answer is C) and here's why: Price floors are minimum prices set by the government for goods that are being sold in an unfair market the with too low of a price. If the government set a price floor above the equilibrium price (market price), consumers will not buy that many goods because of the higher price, therefore those goods will go unsold, resulting in a surplus. Hope this helps you!
How are prices for certain items determined?
It’s hard to know what you’re asking exactly. At the large scale, you’d be looking at supply and demand. In an ideal world, and all things being equal, the price of a given good or service will be the point at which the supply and demand curves intersect.Demand generally goes curves downward as price increases. Supply generally curves upward as price increases. Where those two lines cross represents a price at which there is exactly enough supply to meet existing demand. That is the optimal price point.This point is determined by many market actors (people or groups of people) making individual decisions about what maximizes their utility.In the real world, all things are rarely equal, however. For example, in the US, the federal and state minimum wage laws interfere with the price of labor. They set a price floor below which there can be no supply, no matter how much demand there may be. In this case, the price is influenced by government regulation.If, on the other hand, you’re asking how, say, a hardware store owner sets the price of a hammer, there could be many different considerations.The owner may just take his wholesale cost and add a margin. So he’d take a the hammer that costs him $10 at wholesale and add his markup of 50% and arrive at a retail price of $15.The owner may be trying to use the hammer as a loss-leader to sell lots of nails. So he’d mark the hammer price down below his cost in order to bring traffic to his store, figuring that anybody who buys a hammer might also need some nails (that he sells full price).The owner may have a fixed dollar amount markup. That is not a percentage, but a real dollar amount. So he’d take all his hammers and add $5 to the wholesale cost, whatever it is, to arrive at his price.The owner may use sophisticated shopper psychology to price his items. I.e. $1.99 instead of $2.00.Etc.
What happens when wages are set above the equilibrium level by law?
You get inflation because people earn "more" money as figures but sinse EVERYONE earns more it kind of neutralizes. So people get more money but they can't really but more stuff (because sellers pump up prices as they know incomes gave gone up). Thus money loses value. E.g.: The equilibrium level salary is 100 and you get to buy 100 items at 1 dollar/euro each with your salary. Next salaries go up for everyone, say 200. But items' prices go up too - instead ot 1 dollar/euro they are now 2 dollars/euro. So with "more" money (200) you actually can't but 200 items, you can only but 100 as before because their prices are up. And now the value of 1 dollar/euro is split into two, as you have to combine the buying power of TWO dollars/euro to buy the same one item as before. That's why inflation makes money lose buying power and it also makes exchange rates lower. The E-point is not called equilibrium for nothing.
Price floor and Price ceiling.. ECONOMICS!?
I just cannot understand this: If the price ceiling above Equilibrium, is it effective or ineffective. if the ceiling price below Equilibrium, is it effective or ineffective. Thats the first part.. Now the second.. if price floor above Equilibrium is it effective or ineffective. if price floor below Equilibrium is it effective or ineffective. The book is so complicated. Could someone explain it to me clearly ? Im confused :(