Agricultural prices tend to be unstable because :
Supply is price elastic
Demand is price elastic
Supply is stable
Demand and supply are price inelastic
If the price is a market is fixed by the government below equilibrium.
There is excess equilibrium
There is excess supply
There is excess demand
There is equilibrium
Economists use the term 'Black markets' for situations where
Goods are sold at prices above legal or official prices
Illegal substances are sold
Transactions are not recorded in the GDP figures
Buyers and /or sellers are not paying taxes as they should
When supply increases is an an agricultural market farmers earnings might fall because
Demand is price inelastic
The government buys up all the excess production
All output must be sold at a maximum price
If a maximum price is set above equilibrium there will be:
A price fall
A price increase
Excess supply
Excess demand
Merit goods are
Not provided in the free market economy
Under provided in the free market economy
Over provided in the free market economy
Provided free
A price ceiling is
The minimum price that consumers are willing to pay for a good
The differences between the initial equilibrium price the equilibrium price after a decrease in supply
A maximum price usually set by government ,that sellers may change for a good
A minimum price usually set by government that sellers must charge for a good
If the price in a market is fixed by the government above equilibrium.
Which of the following is the government most likely to subsidizes ?
Negative externalities
Positive exrternalities
Monopolies
Oligopolies
If the market price is below the equilibrium price
Demand will be less than supply
Quantity demanded will be less than quantity supplied
Quantity demanded will be greater than quantity supplied
Quantity demanded will equal quantity demanded
