Refer to the above figure. Other things being equal, when the government imposes a price floor at P2, then we would expect
A) the quantity demanded is Q2.
B) a surplus will occur.
C) price to decline until an equilibrium is achieved at P0.
D) consumers to bid against each other for goods and force the price even higher.
B
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The figure above illustrates the marginal benefit and marginal cost of different quantities of national defense. What is the political equilibrium if voters are well informed?
A) 0 units B) between 0 and 3 units C) 3 units D) 5 units
Which of the following would tend to increase the value of a future stream of income?
a. an increase in the rate of inflation b. an increase in the interest rate c. a reduction in the interest rate d. a reduction in the size of the expected future income
Which of the following is NOT considered investment?
A. A family builds a house in which it plans to live. B. A car dealer stores some of this year's models for next year. C. An individual purchases several pieces of antique furniture. D. A firm buys a computer for word processing.
nswer the question on the basis of the given supply and demand data for wheat. Bushels Demanded Per MonthPrice Per BushelBushels Supplied Per Month45$57750473563686126167157 Equilibrium price will be
What will be an ideal response?