Asked by
Priscilla Ochonogor
on Oct 12, 2024Verified
Suppose state governments,in an attempt to help save the family farm,issued licenses that allowed them to grow a heretofore-illegal substance.As a result,
A) both equilibrium price and quantity of the substance will rise.
B) both equilibrium price and quantity of the substance will fall.
C) equilibrium price will rise and equilibrium quantity will fall for the substance.
D) equilibrium price will fall and equilibrium quantity will rise for the substance.
Equilibrium Price
The cost where the amount of products offered matches the amount of products sought by consumers.
Equilibrium Quantity
The quantity of goods or services supplied is equal to the quantity of goods or services demanded at the market equilibrium price.
- Recognize the impact that external elements, such as government policies, have on market prices and quantities.
Verified Answer
TP
Learning Objectives
- Recognize the impact that external elements, such as government policies, have on market prices and quantities.
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