Refer to the above figure. If the government imposes a price floor of $20
A. the quantity traded will be 200, and the price will be $20.
B. the quantity traded will be 150, and the price will be $20.
C. the quantity traded will be 100, and the price will be $20.
D. None of these.
Answer: D
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A) does not change; increases B) falls; decrease C) rises; increase D) rises; decrease E) falls; increase
An ultimatum game:
A. is a repeated game. B. is a simultaneous move game. C. is when one player makes an offer and the other has to accept or reject. D. is a realistic way of modeling union negotiations.
Here is a consumption function: C = C0 + MPC(Yd). If MPC is 0.75, then we know that
A) as Yd rises by $1, Co rises by $0.75. B) as Yd rises by $1, C rises by $0.75. C) Yd rises by $0.75. D) as C0 rises by $0.75, Yd rises by $1.
Specialization and the division of labor typically result in
A) cost overruns. B) increased output. C) decreased output. D) a greater reliance upon imports.