If the equilibrium price of corn is 20 cents an ear and the government imposes a floor of 30 cents an ear, the price of corn will ______________________.
A. increase to 30 cents
B. remain at 20 cents
C. rise to about 25 cents
D. be impossible to determine
A. increase to 30 cents
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Demand and supply are terms that refer to the behavior of people and firms as they interact in markets.
a. true b. false
Refer to the above table. The table gives the combinations of real disposable income and real consumption for a college student for a year. What is the value of the marginal propensity to consume?
A. 0.3 B. 0 C. 1 D. 0.7
To protect the competitive economic system by restricting the formation of monopolies, the government has passed and enforced
A) rationing systems. B) antitrust laws. C) the imposition of taxes on certain goods. D) zoning laws.
The United States does not allow U.S. citizens to trade with Iraq. This is an example of:
A. a quota. B. a sanction. C. a regulatory trade restriction. D. a tariff.