A minimum price, set by the government, that sellers may charge for a good is known as
A. a price rationing mechanism.
B. a subsidy.
C. a price ceiling.
D. a price floor.
Answer: D
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Of the relationships below, which is the least stable?
A) consumption B) investment C) net exports D) saving
Autonomous aggregate expenditures increases by $100 million, the marginal propensity to consume is 0.60, marginal propensity to invest is 0.20, and the marginal propensity to import is 0.10. Calculate the change in income
What will be an ideal response?
Which of the following must occur as a result of ceilings on apartment rents that are set below market clearing rental rates?
A) Property owners respond to the ceilings by increasing maintenance and repairs. B) Property owners respond to the ceilings by constructing new apartment buildings. C) There is a decrease in the quantity of apartments that prospective tenants wish to rent. D) There is a decrease in the quantity of apartments that property owners offer for rent.
If it costs Microsoft $800 million to bring a new version of Windows to market, and if the marginal cost of producing one unit were $1, the ATC of producing 10 million units would be approximately ______.
Fill in the blank(s) with the appropriate word(s).