A price floor set above equilibrium price will result in:
(a) An excess supply;
(b) An excess demand;
(c) The quantity supplied being in excess of the quantity demanded;
(d) Both (a) and (c) above.
Answer: (d) Both (a) and (c) above.
You might also like to view...
In theory, any object ________ could play the role of fiat money
A) in unlimited supply B) for which demand is limited C) in limited supply D) that has an unlimited demand
Inoculation programs against certain diseases such as small pox, polio, and whooping cough create
a. public goods. b. positive externalities in consumption. c. nonrival goods. d. nonexcludable goods. e. external costs to society equal to the costs of the program.
Exhibit 5-1 Demand curve
?
In Exhibit 5-1, between points a and b, the price elasticity of demand is:
A. 0.67. B. 1.5. C. 2.0. D. 1.0.
Any restriction of international trade that is accomplished by a quota can also be accomplished by a tariff.
Answer the following statement true (T) or false (F)