Question

QUESTION 9 Economists generally favor free trade because it allows consumers to receive more goods and at a lower cost it protects domestic markets it may cause some job loss none of the above QUESTION 10 A government mandated price that is above the equilibrium price is called a price floor a price ceiling O a price wall O a price toilet QUESTION 11 In the supply/demand framework, a price that is below the equilibrium price will create a surplus and cause prices to decrease create a surplus and cause price to increase create a shortage and cause price to increase create a shortage and cause price to decrease

Answer 1

9.) OPTION 'A' is correct, allows consumers to receive more goods and at a lower cost.

10.) Option 'A' is correct , price floor.

11.) Option 'C' is correct.

Explaination :

9.) Free trade is a win-win situation for consumer as the goods will be offered at lower price and varieties of goods and services would be available to chose from.

10.)A price floor is the government imposed price control on what should be the minimum price at which the products must be charged. This is generally higher than equilibrium price to make any sense.

11.) A price that is lower than equilibrium would mean the supply is less than the demand and hence it would result in shortage of products. The price would tend to shift towards equilibrium which is more than the current price and hence it causes the price to increase to meet the equilibrium point.