D Supply curve R Price per unit T A P1 E B Pm U Demand curve Q O Qm Q 1 Quantity per period20 Price of beef D 10 S 0 Q 7 9 Quantity of beef (millions of kilograms) Assume a floor price has been set above the market clearing equilibrium price resulting in a surplus on the market (distance ab). Why would government introduce a floor price only to create a surplus on the market? O To provide farmers with a guaranteed price. O To stabilise fluctuating agricultural prices. O To protect smaller farming enterprises All of the aboveQUESTION 16 Which one of the following statement is incorrect? A minimum price: O should be set above equilibrium O will result in a surplus. O requires further intervention to deal with the surplus O will result in black market activitiesSupply curve R Price per unit T A P1 E C B Pm U Demand curve Q Qm Q1 Quantity per periodmale me graph and answer me que suon below D S P2 P1 Price per unit PO D S Q Qa Qb QCP1 Price pe PO S D 0 Q Qa Qb Quantity per period Assume government intervened in the market. Which price would result in black market activity? O PO OP1 OP2 O None of the abovePrice B Pm U Demand curve Q Om Q Quantity per period Assume government has intervened and set a ceiling price at Pm. Which of the following represents the new producer surplus? O PmDRU O P1PmUT 0PmU O P1DED Supply curve Pm R A Price per unit B P1 E C T Demand curve Quantity nar naringP1 Price pe Demand curve 0 Q Qm Q1 Quantity per period Assume government has intervened and set a floor price (Pm) What is consumer surplus at the set floor price Pm? DPmR OODPIE P1EO OPmRTD Supply curve R Pm A Price per unit B P1 E C T Demand curve 0 Om Q1 Quantity per periodD S P2 Price per unit P1 PO S D 0 Q Qa Qb Qc Quantity per periodS D Surplus 40 b a E 30 Price of beef (rand per kilogram) 20 D 10 S 9 OPrice per P B E T Demand curve O Q Om Q1 Quantity per period Assume government has intervened and set a floor price (Pm) What represents the deadweight loss to society? Rectangle A Rectangle A and triangle B O Triangles B and C 0 00m* Question Completion Status: Price PO S D O Q Qa Qb QC Quantity per period Assume government intervened in the market. Which price represents a floor price? O PO O P1 O P2 O None of the aboveP1 Price p E B Pm U Demand curve Q Om Q1 Quantity per period What is consumer surplus at the market clearing price? ODPmUR O OP1E 0PmU None of the above