A price floor set above the equilibrium price
A) creates a surplus.
B) creates a shortage.
C) creates excess demand.
D) balances supply and demand.
E) has no effect.
A
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The above figure shows the market for blouses. The government decides to impose the sales tax on sellers, as shown in the figure. Using the figure, how much tax revenue does the government raise?
A) $20,000 B) $40,000 C) $60,000 D) $80,000
Suppose a manager is deciding whether or not to purchase a piece of equipment to make an input internally and has completed the majority of the net present value (NPV) calculations. The manager has correctly calculated the NPV to be equal to: NPV = ($1.082 × Q) - $200,000, where Q is the annual quantity of the input the firm needs. If the firm needs 175,000 units of the input each year, the
manager ________ buy the equipment because the NPV is ________. A) should; positive B) should not; negative C) should; negative D) should not; positive
The difference between economies of scale and diseconomies of scale is that economies of scale ______, whereas diseconomies of scale ______.
a. are cost advantages experienced by large companies; are the benefits of remaining a small business b. give the company an advantage over smaller competitors; are problems that come with growth c. are advantages that affect a firm’s production in the short run; are experienced over the long run d. are profits realized when the market price of outputs rises; are losses suffered when prices decline
If the nominal interest rate is high and rising, a possible cause is
A) increased lending activity. B) a rising inflation rate. C) a falling real interest rates. D) increased government borrowing.