Briefly explain by the means of examples the difference between a minimum price and a maximum price

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Briefly explain by the means of examples the difference between a minimum price and a maximum price

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If the government decides, during level 1 of the of Covid-19 lockdown period to introduce price supports to raise the income of farmers, and as a result, the price of wheat is raised to P5, there will be an excess supply of A. Q4 - Q3 B. Q5 - Q2 C. Q4 - Q1 D. 0
Bida Ltd. is a small scale company which manufactures three products namely; Exe, Wye and Zed. The company has two departments: Assembly and Machinery which require the same level of labour expertise. The following information relates to the operations of Bida Ltd.: In the period commencing 1 March 2005 and ending 28 February 2006, the company budgeted for: Fixed overheads (Sh.) 3,000,000 Capacity – Machinery (hr) 50,000 Assembly department (hr) 75,000 The standard costs per unit of each product are: Exe Wye Zed Selling price 2,000 1,580 2,240 Variable costs: 700 400 800 Direct material 480 320 560 Direct labour – machinery department (Sh.80 per hour) 480 320 560 Assembly department (Sh.60 per hour) 360 390 420 Total variable costs 1,540 1,110 1,780 Information in respect to the maximum demand for each product which Bida Ltd. could alternatively source from an independent supplier, for the same quality, is given below Product Maximum demand (units) Price quoted by external supplier per unit (Sh.) Exe 3,000 1,750 Wye 2,500 1,400 Zed 5,000 2,000 Required: Briefly explain the term “limiting factor.” (2 marks) Identify and compute the limiting factor for Bida Ltd. (4 marks) Determine which product(s) should be sourced from the external supplier and the relevant quantities. (9 marks)
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Suppose widgets have a price elasticiy of demand equal to -1.95 and a cross elasticity of demand equal to 2 with dundles. What are the pricing options for a firm that sells widgets? Explain. (b) If the quantity demand for apples is given by: _Q__D _= 300 − 2_._55_p__A _+ 7_._62_p__B _+ 0_._75_Y _ if _p__A _= 90 cents, _p__B _= 50_cents _and _Q__D _= 860. Calculate and interpret the income elasticity of demand for apples.