Suppose government were to legalize the use of cocaine. All of the above. All of the above 30. The price of stock falls. Returns on alternative investments rise.
Investors expect the price to rise in the future.
An unusually large proportion of the population reaches retirement age. Illustrate and explain the operation of target prices in agricultural markets. Government guarantees a price Farmers produce based on guaranteed price Quantity supplied increases Demand price falls with quantity and market price falls. Difference between the target price and the market price is paid as a deficiency payments Complications Increased Production Quantity supplied increases to Q 2 High Deficiency Payments Market price falls to P 2 Deficiency payment is P 1 - P 2 for all Q 2 units produced. Target price system subsidizes domestic buyers.