The following diagram shows a market in equilibrium. If there was a $3.50 price floor, 
A. there would be a shortage of 60 units.
B. there would be a surplus of 60 units.
C. the quantity demanded would be 65 units.
D. the quantity demanded would be 60 units.
Answer: B
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Sally recently got a 15 percent raise. She now purchases 7.5 percent more steak dinners. Sally's income elasticity for steak dinners is:
a. 0.5. b. 0.75. c. 1.5. d. 2.0.
The slope of a perfectly elastic demand curve is equal to zero
a. True b. False Indicate whether the statement is true or false
From the standpoint of economic efficiency, markets tend to provide
a. less of a public good than would be efficient. b. more of a public good than would be efficient. c. exactly the amount of a public good that is efficient. d. none of the above.
Which of the following statements is true?
A) Another name for capital consumption allowance is depreciation. B) When there are two consecutive quarterly declines in Real GDP the economy is said to be in recession (based on the standard definition). C) In the expansion phase of a business cycle, Real GDP rises beyond the recovery. D) a and b E) a, b, and c