When a price floor that has an impact is removed, which of the following statements is correct?
A. Price of the good increases.
B. Quantity supplied for that good decreases.
C. Demand for that good increases.
D. None of these choices are correct.
B. Quantity supplied for that good decreases.
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If the wheat industry is perfectly competitive with a market price of $4 per bushel and Farmer Brown charged $5 per bushel, how many bushels would Farmer Brown sell?
A) some, but fewer than he would at a price of $4 B) more than he would at a price of $4 C) just as many as he would at a price of $4 D) none E) More information is needed about the prices charged by the other wheat farmers.
According to the graph shown, at point C the firm is earning:
A. higher profits than at point B, and they should produce more.
B. fewer profits than at point B, and they should produce more.
C. fewer profits than at point B, and they should produce less.
D. higher profits than at point B, and they should produce less.
In traditional economic models, the narrowly self-interested, well-informed, highly disciplined and cognitively formidable decision maker is often referred to as:
A. homo economicus. B. a boundedly rational agent. C. a behavioral economist. D. a satisficer.
An efficiency wage is defined as
A. any wage scheme that is accepted by the union. B. a wage above the competitive wage that elicits greater effort on the part of workers. C. any wage scheme that pays all workers the same wage. D. a wage below the competitive wage that elicits greater effort on the part of the workers. E. any wage scheme that pays different workers different wages.