A price floor represents
A. a maximum price that can be legally charged for a product or service.
B. a lottery imposed upon producers by the government.
C. a first come, first served mechanism for controlling prices.
D. a minimum price that can be legally charged for a good or service.
Answer: D
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In an oligopoly market, there is (are) ________ seller(s)
A) one B) a few C) many D) very many
If a firm has excess capacity, it
A) produces less than its efficient scale. B) should advertise to maximize profits. C) should decrease its markup to increase its profit. D) is a perfectly competitive firm. E) must face a horizontal demand curve.
A local pizzeria raised its price from $9 to $11 for each pizza and the sales of its pizza decreased from 150 to 100 per day. What is the price elasticity of demand in this case?
A) 1/2 B) -2 C) -1/2 D) 2
Using the ZZ/Y and NX graphs, illustrate graphically and explain what effect a reduction in taxes will have on output, exports, imports, and net exports. Clearly label all curves and clearly label the initial and final equilibria
What will be an ideal response?