Assuming a binding price floor, the more inelastic the supply and the demand curves are, the:
A. greater the surplus a price floor will create.
B. smaller the shortage a price floor will create.
C. greater the shortage a price floor will create.
D. smaller the surplus a price floor will create.
Answer: D
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Assets which include foreign currencies and gold certificates that central banks use to maintain exchange rates in a predetermined range are called:
A) reserve assets. B) tangible assets. C) bank assets. D) discretionary assets.
When a firm is at its short-run break-even point
A. economic profits are negative but the firm should continue to produce because accounting profits are positive. B. economic profits equal zero and the firm should shut down. C. economic profits are positive. D. economic profits equal zero and the firm is earning a nominal rate of return on investment.
Suppose the table below describes the demand for a good produced by monopolist.PriceQuantity$101$92$83$74$65$56$47The total revenue from selling 6 units is ________, and the marginal revenue of selling the 6th unit is ________.
A. $5; 5 B. $24; $5 C. $30; 0 D. $30; $1
The backward-bending supply curve for labor occurs because _____
a. as wages increase, individuals pay higher taxes b. as wages increase, individuals consume more leisure c. as wages increases the number of hours worked increase d. as wages increase, employers cannot afford as many hours