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
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?
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.