MRising Fertilizer PricesProspects for the fertilizer sector are exceptional this year. Grain prices have sky rocketed, stimulating greater plantings of grain and greater demand for fertizerThe price of fertilizer has soared from US$350 to more than US$600 per tonne during the past year.Source National Post, June 21, 2011Suppose that the government tries to halt the fertilizer price rise and sets a price ceiling below the equilibrium pricemr How would the price celling influence the quantity of fertilizer sold and the shortage or surplus of fertilizer?How would the price celling influence the maximum price that a farmer is willing to pay for the last tonne of fertilizer available on an illicit market?anThe price ceiling.OA. decreasesOB. increasesOC. does not changeOD. sometimes increases and sometimes decreasesthe maximum price that someone is willing to pay for the last tonne of fertilizer available on an illicit market.

A price ceiling is a government-imposed limit on the maximum price that can be charged for a…

Rising Fertilizer Prices Prospects for the fertilizer sector are exceptional this year. Grain prices have sky rocketed, stimulating greater plantings of grain and greater demand for fortilizer The price of fertilizer has soared from US$350 to more than US$600 per tonne during the past year Source National Post, June 21, 2011 Suppose that the government tries to halt the fertilizer price rise and sets a price celling below the equilibrium price How would the price celling influence the quantity of fertilizer sold and the shortage or surplus of fertilizer? How would the price celling influence the maximum price that a farmer is willing to pay for the last tonne of fertilizer available on an illicit market? The price ceiling OA. decreases OB. increases the maximum price that someone is willing to pay for the last tonne of fertilizer available on an iicit market OC. does not change OD. sometimes increases and sometimes decreases

Rising Fertilizer Prices Prospects for the fertilizer sector are exceptional this year. Grain prices have sky rocketed, stimulating greater plantings of grain and greater demand for fortilizer The price of fertilizer has soared from US$350 to more than US$600 per tonne during the past year Source National Post, June 21, 2011 Suppose that the government tries to halt the fertilizer price rise and sets a price celling below the equilibrium price How would the price celling influence the quantity of fertilizer sold and the shortage or surplus of fertilizer? How would the price celling influence the maximum price that a farmer is willing to pay for the last tonne of fertilizer available on an illicit market? The price ceiling OA. decreases OB. increases the maximum price that someone is willing to pay for the last tonne of fertilizer available on an iicit market OC. does not change OD. sometimes increases and sometimes decreases

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter4: Supply And Demand: An Initial Look

Section: Chapter Questions

Problem 2TY

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