If a price floor is a binding constraint on a market, then
a. the equilibrium price must be above the price floor
b. the quantity demanded must exceed the quantity supplied.
c. sellers cannot sell all they want to sell at the price floor.
d. buyers cannot buy all they want to buy at the price floor.
c
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The figure above shows the demand for and supply of rental housing in Smallton. If a rent ceiling is set at $800, what is the rent?
A) $800 B) $600 C) $400 D) None of the above answers is correct.
Denise is shopping for lobsters and eclairs. When she faces budget line b1, she chooses market basket A over market basket B. When she faces budget line b2, she chooses basket B over basket C
Which assumption of consumer theory helps us determine Denise's preference ordering over basket A and basket C? A) Completeness B) More is better than less C) Transitivity D) Convexity
Refer to Figure 7.2. Curve A must be MPL and Curve B must be APL because:
A. the two curves intersect at the maximum of Curve A.
B. everywhere that Curve A is positively-sloped, Curve B is positively-sloped as well, and everywhere that Curve A is negatively-sloped, Curve B is negatively-sloped as well.
C. when Curve A lies above Curve B, Curve B is rising, and when Curve A lies below Curve B, Curve B is falling.
D. when Curve B lies above Curve A, Curve A is rising, and when Curve B lies below Curve A, Curve A is falling.
The concept of utility:
A. cannot be used to explain why people are selfish. B. cannot be used to explain why people are altruistic. C. cannot be used to explain why people are charitable. D. None of these is true.