The graph below represents the market for corn, where price is price per bushel and quantity refers to the number of bushels of corn. Suppose the government announces a support price and states that the price per bushel of corn cannot fall below $14 per bushel, the result would be: Price $20 0 10 20 30 40 50 60 70 80 90100 Quantity O a permanent shortage of 40. O a permanent surplus of 20. O a permanent shortage of 20. O a permanent surplus of 40. Question 7 (1 point) ~/ Saved Which of the following is an example of an effective price floor? O In order to motivate innovators, the US government allows a 25 year patent on new innovations after 2015. G) In 2012, after Hurricane Sandy hit the Northeast United States, New York and New Jersey set a price limit on basic goods such as bottled water and gasoline. O In 2018, Scotland imposed a minimum price for alcohol, set at 50 pence (70 cents) per unit. 0 The government of India has set price ceilings on how much ride-share companies can charge customers during busy hours Given the figure below to represent the housing market that has rent controls, Rent (90' W) Rent; Rent; Ref"; Rent, Roma 00 Q1 02 03 04 Quantity of rental units (per period) if rent controls are set at Rent3: O a shortage of rental units will occur, equivalent to the distance of C23 - Qi- O the rent control will not be effective since it is set above equilibrium price. 0 some renters will be willing to pay a price as high as Rent4 for Q3 units. 0 no one will have to pay a higher actual price than Rento, nor will anyone be willing to do so. The reason for price controls is that the government: O is trying to promote the formation of black markets. (9 is trying to ensure that markets clear. 0 is trying to increase the demand curve. 0 is trying to promote more equitable outcomes for a certain group of people