If a nonbinding price floor is imposed on a market, then the
a. quantity sold in the market will decrease
b. quantity sold in the market will stay the same.
c. price in the market will increase.
d. price in the market will decrease.
b
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A ____ total cost function implies that marginal costs ____ as output is increased
a. linear; increase linearly b. quadratic; increase linearly c. cubic; increase linearly d. a and b e. none of the above
Some individuals or families can become completely saturated with a service such as television. This suggests that
a. wants are limited b. desires for a single commodity can be satisfied but then the focus will switch to other goods and services c. a highly productive economy may someday be able to satisfy all human desires d. resources are not truly fixed in supply as we generally assume e. scarcity does not exist
Crises that occasionally hit financial markets will increase the demand for money since:
A. the risk of holding money relative to other financial assets decreases. B. the return on financial assets increases. C. the return on money increases. D. there is no risk with holding money.
Figure 16.5Figure 16.5 depicts the market effects of a gasoline tax. How much revenue does the government collect from the gasoline tax?
A. (PA-PC)xQ2 dollars B. (PA-PC)xQ1 dollars C. (PA-PB)xQ2 dollars D. (PA-PB)xQ1 dollars