Answer: E) the market will remain in equilibrium.
Suppose a market is in equilibrium. If a price floor is set in this market below the equilibrium price, it is likely that:
A) quantity demanded will increase.
B) a surplus will arise.
C) a shortage will arise.
D) the quantity sold will rise.
E) the market will remain in equilibrium.
Economics
You might also like to view...
Which of the following is a market-based solution to the problem of adverse selection?
A) Taxation B) Signaling C) Sniping D) Subsidization
Economics
The agreement between the United States, Mexico, and Canada that sought to lower trade barriers is known as
A) the General Agreement on Tariffs and Trade. B) the North American Free Trade Agreement. C) the World Trade Organization. D) the Smoot-Hawley Tariff Act. E) the New World Free Trade Agreement.
Economics
Advocates of "fixed policy rules" believe
A. That fine-tuning can improve macro outcomes. B. That the economy is better off using discretionary policy. C. In constant increases in the money supply and balanced federal budgets. D. That politicians can best determine when to stimulate and restrain the economy.
Economics
David has just ordered a smartphone only to be told that she will have to wait one month for it to be delivered. Which of the following statements is TRUE?
A) The smartphone is not a scarce good. B) The smartphone is an economic good. C) The smartphone is human capital. D) The smartphone is an intangible good.
Economics