A binding price floor means that:
A. government is imposing a maximum legal price that is typically below the equilibrium price.
B. sellers are artificially restricting supply to raise price.
C. government is imposing a minimum legal price that is typically above the equilibrium price.
D. inflation is severe in this particular market.
Answer: C
You might also like to view...
Refer to Figure 16.1. An increase in the corporate tax rate is best represented by a movement from
A) point A to point B. B) point B to point A. C) point A to point C. D) point C to point A.
The ____ is the absolute value of the slope of an indifference curve
a. marginal rate of substitution b. average rate of transitivity c. relative rate of utility d. marginal rate of transposition
Total product divided by the variable input is
A. average total cost. B. average product. C. marginal cost. D. marginal product.
Since the National Basketball Association is the only significant employer of professional basketball players, it might be referred to as a(n)
A. oligopsony. B. monopsony. C. oligopolist. D. monopoly.