If the government removes a binding price floor from a market, then the price paid by buyers will
a. increase, and the quantity exchanged will increase.
b. increase, and the quantity exchanged will decrease.
c. decrease, and the quantity exchanged will increase.
d. decrease, and the quantity exchanged will decrease.
c
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When the domestic currency depreciates, foreign demand for domestic goods increases
a. True b. False Indicate whether the statement is true or false
Figure 11-3
In Figure 11-3, one can tell from the graph that the monopolist will earn a positive profit only if
A. the price exceeds $3. B. the price exceeds $2. C. output is less than 60 units. D. One cannot tell from the information given.
Marginal propensity to consume
A. gives the amount a person changes planned consumption for a change in real disposable income. B. is the proportion of total disposable income that is consumed. C. is the amount of consumption that is independent of the level of disposable income. D. is the same as the break-even point.
For a perfectly competitive firm, the demand curve
a. coincides with the marginal revenue curve. b. both of the other answers are true c. coincides with the market price.