What is the effect of a price ceiling on the quantity demanded of the product? what is the effect of a price ceiling on the quantity supplied? why exactly does a price ceiling cause a shortage?

Answers

Answer 1

A price ceiling (below the equilibrium price) increases demand and decreases supply. This is why price caps create shortages.

The price ceiling prevents the price from rising above a certain level. When the price cap is set below the equilibrium price, the quantity demanded exceeds the quantity supplied, resulting in excess demand or shortage.

We are introducing price caps for people who need products such as home, prescription drugs, and auto insurance. However, when the market price does not reach the equilibrium level, the quantity demanded exceeds the quantity supplied, resulting in a shortage of supply.

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Related Questions

The ________ market is the set of consumers who have interest, income, and access to a particular offer.

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'The available market is the set of consumers who have interest, income, and access to a particular offer.

Available Market - Potential market people who have enough money to buy the product. Eligible Available Market – People in the available market who are legally entitled to purchase the product. Markets Served – Segments of the Eligible Available Markets that we have decided to serve (markets served).

An Available Market is a place where buyers and sellers meet to facilitate the exchange or trade of goods and services. A marketplace can be physical, like a retail store, or virtual, like an e-merchant.

A market is a place where manufacturers, distributors or retailers sell and consumers buy. Examples of this are shops, malls, or websites. The term can also refer to an entire group of buyers of goods or services. Firms operating in the market usually compete with other firms.

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All else constant, an increase in inventory will have what effect on operating cash flow?

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An increase in inventory would decrease the cash flow.

An increase in current asset implies a blockage of funds, like in this instance, a blockage of funds in the company's inventory, which implies cash outflow and lowers the cash flow from operating activities using the indirect approach.

What is Operating cash flow?

An essential metric for assessing the financial performance of a company's main business operations is operating cash flow.A cash flow statement's opening part, which also contains cash from investing and financing activities, shows operating cash flow.The indirect method and the direct approach are both ways to show operating cash flow on a cash flow statement.The indirect technique starts with the income statement's net income and then subtracts non-cash items to get the cash base amount.The focus of operating cash flows is on cash inflows and outflows associated with a company's core business operations, including the sale and purchase of inventories, the provision of services, and the payment of salaries.

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When all bonds of an issue mature at the same time, they are called __________ bonds. a.term b.serial c.callable d.convertible

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They are referred to as "term bonds" when all of the bonds in an issue mature at once.

What is Issue?

A serial bond is a bond issue that is designed so that until all of the bonds have matured, a portion of the outstanding bonds will continue to mature at regular intervals. These bonds are intended to finance projects that provide a steady income stream for bond repayment because they mature gradually over a number of years. The maturity dates are specified in the offering documents, and the entire bond issuance is sold to the public on the same day. It is less likely that an issuer will miss an interest or principal payment and fail on the bond issuance if the total amount of outstanding bonds is decreased. Other bond offers are structured with a sinking fund, however a serial bond issue requires the issuer to repay specific bondholders on a certain date.

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A cash budget is a money management tool that helps you to? a. monitor and control your finances. b. implement a system of disciplined spending. c. ach

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The cash budget is a money management tool that helps you to:

monitor and control your financesimplement a system of disciplined spendingachieve your long-term financial goals

What is a cash budget?

In accounting, the cash budget refers to a company's estimation of cash inflows and outflows over a specific period of time. Most company use the cash budget to determine whether it has sufficient cash to continue operating over the given time frame because it also provide a company with insight into its cash needs and any surpluses which help it determine if the business is using cash effectively.

On a level, the cash budget are used to assess whether the entity has sufficient cash to continue operating over the given time frame, hence, the cash budget is a money management tool that helps you to monitor and control your finances, implement a system of disciplined spending and achieve your long-term financial goals

Therefore, the Option D is correct.

Missing options "a. monitor and control your finances. b. implement a system of disciplined spending. c. achieve your long-term financial goals. d. All of these."

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Companies that observe religious holidays and allow workers to take breaks during the day to observe religious rites understand the ________ barriers that affect international trade.

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Companies that commemorate religious holidays and permit workers to take breaks during the day to observe religious rites comprehend the social and cultural barriers that affect international trade.

What is International trade?

International trade is the term for cross-border economic activity. Consumer products like televisions and apparel, capital goods like machinery, raw materials, and food are some of the things that are frequently traded. A need or desire for commodities or services leads to the exchange of capital, goods, and services across international borders or territories. Such trade accounts for a sizable portion of the gross domestic product in most nations.

Social and cultural norms and values serve as the foundation for socio-cultural barriers that are man-made. By limiting access to information sources and provoking unpleasant emotions, they mostly have a detrimental impact on information seeking.

Social barriers, also known as social determinants of health, are factors that affect how people are born, grow, learn, work, and age and can affect how well persons with disabilities function in society. Examples of societal barriers are as follows: Disability significantly lowers the likelihood of employment.

Hence, Companies that commemorate religious holidays and permit workers to take breaks during the day to observe religious rites comprehend the social and cultural barriers that affect international trade.

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Products sold on alibaba's website to foreign countries may be subject to taxes, or _____.

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Products sold on Alibaba's website to foreign countries may be subject to taxes, or tariffs

This is further explained below.

What are Tariffs?

Generally, Alibaba Group Holding Limited, more often referred to simply as Alibaba, is a Chinese multinational technology business that specializes in e-commerce, retail, the Internet, and technology.

Alibaba is under the umbrella of Alibaba Group.

Tariffs offer a pricing advantage to locally produced items over comparable goods that are imported, and they generate income for governments.

Tariffs give locally produced goods an edge over identical goods that are imported. One of the outcomes of the Uruguay Round was the pledges made by nations to lower their tariffs and to "bind" their customs duty rates to levels that are difficult to increase.

In conclusion,  Products that are purchased through Alibaba's website and sent to countries outside of China may be subject to taxes or customs.

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complete question

Products sold on Alibaba's website to foreign countries may be subject to taxes, or _____.

a. currency devaluation.

b. trade deficits.

c. tariffs.

d. bills of lading.

The short-run aggregate supply curve shifts to the right? when production costs rise when production costs fall when exchange rates rise when exchange rates fall

Answers

Answer:

In this lesson summary review and remind yourself of the key terms and graphs related to short-run aggregate supply. topics include sticky wage theory and menu cost theory, as well as the causes of short-run aggregate supply shocks.

Komelia, a country in southern europe, imports rubber and plastic products from china. it can be said that komelia is engaged in _____.

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Komelia, a country in Southern Europe, imports rubber and plastic products from China. it can be said that komelia is engaged in global procurement. Thus, option A is correct.

What is import?

Import can be defined as when the goods are services are being transferred from one country to another country full stop

If this is done between two foreign countries, then it can be also called as international trade.

A global procurement can be defined as a country like Komelia products like rubber and plastic from another country that is chine for its use. Therefore, option A is the correct option.

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The question is incomplete, the complete question will be:

A) global procurement

B) vertical integration

C) privatization

D) insourcing

Is an example of an implicit cost? a. the wear and tear on a firm's machinery b. the cost to transport a firm's goods c. a firm's electric bill d. a salary paid to an employee

Answers

The price to transport a firm's goods is an example of implicit cost.

Implicit prices are a unique type of possibility cost: the cost of assets already owned by means of the firm that could have been put to some other use. For example, an entrepreneur who owns a enterprise should use her labor to earn income at a job.

What is express and implicit cost?

Explicit charges are out-of-pocket expenses for a firm—for example, repayments for wages and salaries, rent, or materials. Implicit prices are the probability price of assets already owned via the association and used in business—for example, expanding a manufacturing facility onto land already owned.

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Supplies that are not used immediately are recorded as a(n) ______ when purchased.

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Supplies that are not used immediately are recorded as an asset when purchased. Supplies are various items belonging to the company that have consumable properties, or can be used many times. In general, various items that are included in the equipment or supplies have a shape that tends to be smaller and has the aim of completing the company's needs.

Supplies are divided into two things, which is:

1. Office supplies or office supplies are various items that are needed to carry out various office activities, such as paper, pens, pencils, erasers, rulers, pencil sharpeners and various other stationery.

2. Factory equipment or factory supplies are various items needed to carry out activities in the factory. A simple example is a variety of equipment to be able to maintain and clean production machinery equipment.

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Financial inequality between public schools was an important issue in th 1990s but has been mostly resolved in the past decade. True or false

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Financial inequality between public schools was a crucial issue in the 1990s but has been mostly resolved in the past decade. False.

What is the distinction between public and private schools in the Philippines?

Private schools are not government funded, but track the same curriculum as public schools. Many private schools in the Philippines began as missionary or Christian schools. Classes are less than in public schools, and the facilities and resources are usually much better. Well, when it arrives to comparing the wisdom outcomes of children, private schools are no better than state schools.

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If your salary increased 4 percent last year and inflation averaged 4 percent, your purchasing power would?

Answers

The purchasing power would remain the same if inflation averaged 4% last year and your salary climbed by 4%.

The correct answer is c. remain the same.

The worth of a currency is determined by how many goods or services one unit of that currency can be used to purchase. Inflation may cause it to weaken over time. This is due to the fact that you may acquire fewer items or services as a result of increased pricing. A currency's buying power is another name for its purchasing power.

When referring to investments, purchasing or buying power refers to the dollar amount of credit that a customer has based on the marginable securities that are currently in their brokerage account. A currency's purchasing power and range of available goods are diminished by inflation. Prices rise as a result of a loss of purchasing power.

The complete question is :

If your salary increased 4 percent last year and inflation averaged 4 percent, your purchasing power would have

a. increased.

b. decreased.

c. remain the same.

d. Impossible to tell.

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Equally weighted indexes do not correspond to buy and hold portfolio strategies. true false question. true false

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Equally weighted indexes do not correspond to buy and hold portfolio strategies. this statement is true.

An index is a measure or measure of something. In finance, it usually refers to a statistical measure of changes in the stock market. For financial markets, stock and bond market indices consist of hypothetical portfolios of securities that represent a particular market or segment thereof.

An index is a list of words or phrases and clues to where useful material about that heading can be found in a document or collection of documents. Examples include an index on the spine of a book or an index that serves as a library catalog.

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When an organization focuses on the obligations it has to consumers, employees, suppliers, and distributors it is accepting its ________ responsibility

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When an organization focuses on the obligations it has to consumers, employees, suppliers, and distributors it is accepting its stakeholder responsibility.

What is the stakeholder responsibility?

A company's stakeholder responsibilities refers to those obligations that it has to its internal and external stakeholders.

Internal stakeholders include employees and the external stakeholders include consumers, suppliers, and distributors.

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According to douglas mcgregor, managers should pay more attention to __________.

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According to Douglas McGregor, managers should pay more attention to social and self-actualization needs.

Who was Douglas McGregor?

In addition to teaching management at the MIT Sloan School of Management, Douglas Murray McGregor served as the institution's president from 1948 to 1954. In addition, he was a professor at the Indian Institute of Management in Kolkata. His 1960 book The Human Side of Enterprise had a significant impact on educational procedures.

Abraham Maslow taught McGregor. His Theory X and Theory Y, which were presented in his book "The Human Side of Enterprise" (1960), are best known for their suggestion that a manager's individual presumptions about human nature and behavior determine how they manage their employees. He has made significant contributions to the development of management and motivational theory.

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What is the process that gives home buyers detailed information about the overall condition of a home?

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What to expect from the actual buying home process, and  practical advice to make your life easier when moving into a home, demystifying the process and helping you get the most out of this purchase.

Process to buy home?
Buying real estate
can be difficult for beginners. After all, there are multiple standards, steps, and tasks, and you might fear you're making a costly mistake. Here's what to consider before you buy, what you can expect from the actual buying process, and advice on how to make life easier after buying your first home. We explain in detail, demystify the process, and help you get the most out of your purchase. The American ideal still includes property rights as a key element. Government programs, tax benefits if you are a first-time buyer and do not have the usual minimum down payment (ideally 20% of the purchase price of a traditional loan) or belong to certain groups measures, and government-backed loans. Even if you are not a beginner, you may qualify for the first purchase tax credit.

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The act that makes it unlawful to discriminate in prices charged to different purchasers of the same product is called:________

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The Act that makes it unlawful to discriminate in prices charged to different purchasers of the same product is called the Robinson-Patman Act.

What is the Robinson-Patman Act?

It was also known as the Anti-Price Discrimination Act. It was a federal legislation that was enacted in 1936 that protects small businesses from being driven out of the marketplace by prohibiting discrimination in pricing, promotional allowances, advertising by large franchised companies.

Furthermore, this legislation is the one that makes it unlawful to discriminate in prices charged to different purchasers of the same product is called the Robinson-Patman Act.

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If a company purchases equipment costing $6,100 on credit, the effect on the accounting equation would be:_________

Answers

If a company purchases equipment costing $6,100 on credit, the effect on the accounting equation would be: an increase in assets and an increase in liabilities

What is accounting equation?

The accounting equation emphasizes that the assets of the company are all financed using its equity capital contributed by owners as well as  liabilities, which are amounts borrowed from external parties.

In this case, purchase on credit means that the company indebted to an external party to the tune of $6,100 , in essence, its liabilities, claims on the company by external parties would increase, so also its assets because it has in its possession a new asset, equipment, to be precise.

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During which phase would the emergency situation end and rebuilding efforts begin?

Answers

Reconstruction will be the phase that the emergency situation end and rebuilding efforts begin. This is a component of planning for continuity of operations (COOP). COOP is an effort made by specific agencies to make sure they can carry out their critical tasks during a variety of catastrophes.

COOP is merely ethical business conduct. Orders of succession, delegations of power, backup facilities, backup communications, administration of vital records, human resources, testing, training, exercising, devolution, and reconstitution are all covered by COOP Plans. In order to ensure the continuation of an agency's core operations, COOP involves preparing for every circumstance, including natural disasters, accidents, technology threats, and national security emergencies.

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A short term increase in synaptic strength after repetitive high frequency stimulation of a neural synapse is termed:_________

Answers

A short term increase in synaptic strength after repetitive high frequency stimulation of a neural synapse is termed Facilitation.

What is synaptic strength?

Synaptic strength  can be described as the average amount of current  as well as the voltage excursion  that is been developed in the  postsynaptic neuron  through the  action potential in the presynaptic neuron.

It should be noted that  short term increase in synaptic strength after repetitive high frequency stimulation of a neural synapse is termed Facilitation.

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What type of virus is used to lock a user's system, or cloud accounts until the system's owner complies by paying the attacker a monetary fee?

Answers

Ransomware is the type of virus is used to lock a user's system, or cloud accounts until the system's owner complies by paying the attacker a monetary fee.

Ransomware is a subset of malware in which the data on a victim's computer is locked typically by encryption and payment is demanded before the ransomed data is decrypted and access is returned to the victim after the payment is made.

The motive for ransomware attacks is usually monetary, and unlike other types of attacks, the victim is usually notified that an exploit has occurred and is given instructions for how to recover from the attack.

Payment is often demanded in a virtual currency, such as bitcoin, so that the cybercriminal's identity is not known.

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What best explains why the employee of the month program failed to work? choose the correct answer.

Answers

"The decision-makers didn't use the scientific method to test if their ideas made sense" best explains why the employee of the month program failed to work. Option A

This is further explained below.

What is the scientific method?

Generally, Since the 17th century at the very least, the progression of scientific inquiry has been defined by the use of the scientific method, which is an empirical technique of collecting information.

It requires thorough observation as well as the application of rigorous skepticism about what is seen, given that one's cognitive assumptions might affect how one understands the data.

In conclusion, The fact that the decision-makers did not put their ideas through the rigorous examination needed by the scientific method perhaps explains the failure of the employee of the month program the most simply. Alternative A

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complete question

What best explains why the employee of the month program failed to work?

Choose the correct answer.

A) The decision-makers didn't use the scientific method to test if their ideas made sense

B) The Hawthorne effect suggests the decision-makers gave employees too much attention

Following a _____ is to pay the going rate for a particular job, within a particular market based on research and salary studies.

Answers

Following a Market Compensation Policy is to pay the going rate for a particular job, within a particular market based on research and salary studies.

What is the Market Compensation Policy?

This is the term that us used to refer to the the of market plan that would have to do with the market rate that is ongoing for the particular job which is determined based on researching on salaries. It is one that had to do with the adopting of the market philosophy and would have to do with adding percentage raises to salary.

Hence we can say that following a Market Compensation Policy is to pay the going rate for a particular job, within a particular market based on research and salary studies.

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A primary residence in south carolina has a fair market value of $175,000. the local millage rate is .285. what can the owner expect to pay in property taxes?

Answers

In South Carolina, property taxes are computed based on the market value of an owner-occupied, legal residence. The assessed value of these houses is 4% of their fair market value. Market value is established by regular countywide reassessments.

Additionally, South Carolina has a corporate income tax rate of 5.00 percent. South Carolina levies a state sales tax of 6.00 percent, a local maximum sales tax of 3.00 percent, and an average state and local sales tax of 7.44 percent.

One mill is $1 for every $1,000 in assessed value. It consists of a local element that supports neighborhood services and a statewide portion that supports public education.

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In terms of cost principles and cost allowability contract terms may only be _______ restrictive than required by law.

Answers

The answer is :- more

In terms of cost principles and cost allowability contract terms may only be more restrictive than required by law.

What are Allowable Costs?

What prices are acceptable and what costs are not are subject to extremely specific regulations set forth by the federal government. For instance, some of the costs that a contractor might typically report in terms of home office overhead in accordance with generally accepted accounting principles may not be allowed by the federal government when using the straightforward Eichleay Formula to calculate unabsorbed home office overhead.

According to the terms of the relevant contract in question, Cost Accounting Standards, and the FAR, allowable costs are defined as expenses that are reasonable and assignable to the contract.

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Intel corporation had assets equal to $123,249 million and liabilities equal to $54,230 million for a recent year-end. what was the total equity for interest business at year-end?

Answers

Total Equity was $69019 million at year's end.

we arrive. total equity at year's end is expressed as total equity at year's end = asset - liabilities, where value is the result.

Total Equity = $123,249 Million - $54,230 Million at the end of the year.

Total Equity was $69019 million at year's end.

What are liabilities?

A liability is defined in financial accounting as the future forfeitures of economic benefits that an entity must make to other entities as a result of previous transactions or other previous events, the resolution of which may result in the transfer or use of assets, the provision of services, or other future yielding of economic benefits.

Financial accounting liabilities might be based on equitable obligations or constructive obligations rather than having to be legally enforceable. A duty based on moral or ethical principles is referred to as an equitable obligation.

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If the price of shoes is $60/pair, the _____ will be 10 pairs of shoes. quantity demanded quantity supplied market demand market supply

Answers

If the price of shoes is $60/pair, the quantity demanded  will be 10 pairs of shoes.

What is the quantity demanded?

This is the amount that is demanded of a good by consumers in the market and it is heavily influenced by the price.

The quantity demanded is found by looking at the demand curve which is the downward sloping line in the attached graph. The 10 pairs of shoes at $60 is therefore the quantity demanded.

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A(n) ________transaction involves an exchange between the company and a separate economic entity. (enter one word per blank)

Answers

A(n) external transaction involves an exchange between the company and a separate economic entity.

What is an external transaction?

This is the term that is used to refer to the exchange of values that would happen between two different entities, The exchange can be seen in the form of an external transaction that would take place between the entities and the companies.

Hence we can say that A(n) external transaction involves an exchange between the company and a separate economic entity.

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A nonprofit organization that has operations in several countries is called a(n) _____ organization.

Answers

A nonprofit organization that has operations in several countries is called a B) multinational organization.

What is a multinational organization?

A multinational organization is one that has operations in several countries instead of just one.

Being a multinational organization is not limited to for profit businesses alone which means that nonprofit organizations in several countries are also considered multinational organizations.

Options for this question include:

A) multinational corporation.B) multinational organization.C) multicontinental corporation.D) multicultural organization.E) connected organization.

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The price elasticity for corn from a particular farmer is likely to be ________.

Answers

The price elasticity for corn from a particular farmer is likely to be perfectly elastic because that farmer has no influence over the price regardless of how much that farmer can produce.

What is Price Theory?

A microeconomic principle known as the "theory of price" or "price theory" asserts that the forces of supply and demand in the market will always decide the appropriate price for a given commodity or service.

According to the theory of prices, which is a branch of economics, the connection between a good or service's supply and demand at any given time determines the price of that good or service. If demand outpaces supply, prices ought to rise; if supply outpaces demand, prices ought to decline.

In a free market economy, producers normally seek to charge the most amount that is reasonable for their goods and services, while consumers want to pay the least amount possible to buy them. The two sides will eventually come together due to market forces at a price that both consumers and producers are ready to accept.

The market is said to be in equilibrium when the amount of an item or service that is offered equals the demand from potential customers. Price modifications are possible as market circumstances change thanks to the idea of price theory.

Thus, the Price theory holds value in economics while setting the price of goods and services.

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Complete Question:

The price elasticity for corn from a particular farmer is likely to be                          

because that farmer has no influence over the price regardless of how much that farmer can produce.

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