To say that a price floor is binding is to say that the price floor
a. results in a shortage.
b. is set below the equilibrium price.
c. causes quantity supplied to exceed quantity demanded.
d. All of the above are correct.
c
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When existing firms leave a perfectly competitive industry, ________
A) the equilibrium price decreases, while the equilibrium quantity increases B) the equilibrium price increases, while the equilibrium quantity decreases C) both the equilibrium price and quantity increase D) both the equilibrium price and quantity decrease
A positive technological change will cause the quantity of a good supplied to increase
Indicate whether the statement is true or false
If an 8 percent decrease in the price of lobster leads to a 15 percent decrease in the quantity of lobster supplied, then the supply of lobster is
A) unitarily elastic. B) elastic. C) unit elastic. D) perfectly inelastic.
In a world of scarcity, there has to be some way to ration the available resources. According to economists, the most efficient use of available resources occurs when rationing occurs via
A) queuing. B) lotteries. C) political power. D) the price system.