When the government wishes to help producers of goods (such as farmers) by establishing the minimum price at which their good can be sold, economists call this a
A. alternative price.
B. price statement.
C. price ceiling.
D. price floor.
Answer: D
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Steve sells hotdogs from a vending cart downtown. The table above shows his total revenue per day at four different prices. Between which two prices is the demand for hotdogs
a) elastic? b) unit elastic? c) inelastic?
Average variable cost (AVC)
A) is the variable cost divided by the average sales price of the final good. B) is the variable cost divided by the quantity of output produced. C) is equal to average fixed cost (AFC) when no output is produced. D) is always less than average fixed cost (AFC).
The relationship between quantity supplied and price is usually
A) an inverse relationship. B) a direct relationship. C) a negative relationship. D) impossible to determine.
The above table gives the demand and supply schedules for cat food. If the price is $3
00 per pound of cat food, will there be a shortage, a surplus, or is this price the equilibrium price? If there is a shortage, how much is the shortage? If there is a surplus, how much is the surplus? If $3.00 is the equilibrium price, what is the equilibrium quantity?