If a price floor is not binding, then
a. there will be a surplus in the market
b. there will be a shortage in the market.
c. there will be no effect on the market price or quantity sold.
d. the market will be less efficient than it would be without the price floor.
c
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In a bilateral monopoly, wages and employment are determined by
A. The intersection of market supply and demand. B. The intersection of marginal cost and marginal revenue product. C. Negotiation. D. The intersection of marginal wage and market demand.
Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower
Refer to the above table. For which prices is demand inelastic?
A. in a range of prices below $6.00 B. in a range of prices above $9.00 C. in a range of prices above $6.00 D. in a range of prices between $5 and $1
When a market is in disequilibrium consumers and producers change their behavior. As a result the market reaches equilibrium
Indicate whether the statement is true or false