A price floor set above the equilibrium price causes quantity supplied to exceed quantity demanded
a. True
b. False
Indicate whether the statement is true or false
True
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The high point in the business cycle is referred to as the
A) turning point. B) peak. C) boom. D) trough.
The income effect refers to a change in:
a. income because of changes in the CPI. b. the quantity demanded of a good because of a change in the buyer's real income. c. the quantity demanded of a good because of a change in the buyer's money income. d. none of these.
If the quantity demanded increases by 20 percent in response to a 10 percent decrease in price, demand is classified as
a. unstable. b. relatively inelastic. c. relatively elastic. d. of unitary elasticity.
If there are external benefits for good X then which of the following would be true?
a. The socially efficient amount of good X can be achieved if society subsidizes consumers of good X. b. The socially efficient amount of good X will be equivalent to the free market equilibrium quantity. c. The socially efficient amount of good X can be achieved if society taxes consumers of good X. d. The socially efficient amount of good X does not exist.