A price floor causes excess demand, resulting in the need to ration by some means other than price.
Answer the following statement true (T) or false (F)
False
An effective price floor is a price above the equilibrium price so that there is excess supply NOT excess demand.
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The largest change in the unemployment rate from the beginning of a recession to the peak unemployment rate occurred during the recession beginning in:
A. 1929. B. 1973. C. 2007 D. 1980.
If a 10 percent price increase causes the quantity demanded for a good to decrease by 10 percent, demand is unitary elastic
a. True b. False Indicate whether the statement is true or false
An economist's measurement of profit differs from an accountant's in that: a. accountants calculate total revenue differently than do economists
b. economists do not always include all of the opportunity costs when calculating total production costs. c. accountants do not always include all of the opportunity costs when calculating total production costs. d. economic profit generally exceeds accounting profit.
Ceteris paribus, which of the following would cause the aggregate demand curve to shift to the left?
a. lower personal taxes b. a rise in consumer confidence c. greater stock market wealth d. a reduction in transfer payments