Two business owners cannot agree on which of them owns the larger business. One owner who runs a printing firm using the latest expensive equipment considers his firm to be large The other owner who has a fruit farm uses only manual labor to pick the fruit considers his business to be larger.

1. Which forms of measuring business size do each owner seems to be using?
2. Which method of measuring business size would you advise the two owners to use and why?

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.