When a price floor is set for a market, quantity supplied will be:
A. Less than the equilibrium quantity, and price will be less than the equilibrium price.
B. Less than the equilibrium quantity, and price will be greater than the equilibrium price.
C. Greater than the equilibrium quantity, and price will be less than the equilibrium price.
D. Greater than the equilibrium quantity, and price will be greater than the equilibrium price
Answer: D. Greater than the equilibrium quantity, and price will be greater than the equilibrium price
You might also like to view...
A monopolist faces the inverse demand curve P = 60 - Q. It has variable costs of Q2 so that its marginal costs are 2Q, and it has fixed costs of 30. The monopoly's profit maximizing output is
A) 5. B) 10. C) 15. D) 20.
There is no good basis for dividing federal and state regulatory jurisdictions
Indicate whether the statement is true or false
A budget-constrained public enterprise may behave quite differently when entry is barred than it would when new entry is allowed
Indicate whether the statement is true or false
An increase in supply could be caused by a(n)
a. increase in price b. government-imposed price ceiling c. decrease in resource prices d. decrease in consumer incomes e. unfavorable shift in tastes and preferences