Price floors
A) provide free market incentives for producers.
B) create surpluses by setting the price above equilibrium.
C) create shortages by setting the price above equilibrium.
D) are used by advocates of the free market.
B
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Suppose there are only two goods – Food (F) and Shelter (S). The demand equations for these two goods depend on their prices, pF and pS as follows:
DF (pF, pS) = 10 – 2pF – pS DS (pF, pS) = 10 – pF – 2pS The supply curves depend only on their own prices: SF (pF) = pF SS (pS) = 5pS Determine the equilibrium price and quantity of these goods.
All of the following are major sources for financing public education EXCEPT
A) income taxes. B) sales taxes. C) property taxes. D) government fees.
If firms in an oligopoly agree to produce according to the monopoly outcome, they will produce the same level of output as they would produce in a Nash equilibrium
a. True b. False Indicate whether the statement is true or false
If the euro continues to remain strong against the U.S. dollar, which of the following strategies would make the most sense for BMW?
A) It might be advantageous for BMW to consider exporting from Germany to the United States to take advantage of cheaper costs. B) It might increase its manufacturing capacity in the United States to take advantage of the cheaper dollar. C) It might consider raising prices in the United States to earn more profits for BMW. D) It really doesn't make any difference to BMW since consumers will buy the cars no matter what they cost.