Figure 4-1
illustrates the market for compact discs. If the government imposes a price floor of $25 for compact discs, which of the following will be true?
a.
Consumers would wish to purchase 1,000 compact discs.
b.
Producers would wish to sell 5,000 compact discs.
c.
There would be a surplus of 4,000 compact discs.
d.
All of the above are true.
d
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If a country were to experience an increase in its factors of production, its production possibilities frontier would shift outward
Indicate whether the statement is true or false
Kate and Alice are small-town ready-mix concrete duopolists. The market demand function is Qd = 20,000 - 200P, where P is the price of a cubic yard of concrete and Qd is the number of cubic yards demanded per year. Marginal cost is $80 per cubic yard. The Cournot model describes the competition in this market. Which of the following best represents Kate's inverse residual demand function?
A. P(QK) = (100 - 0.005QA) - 0.005QK B. P(QK) = (100 - 0.005QK) - 0.005QA C. P(QK) = (200 - 0.005QA) - 0.005QK D. P(QK) = (200 - 0.005QA) - 0.005QA
The Fed first announced an inflation target of 2% in
A) 1979. B) 2005. C) 2012. D) 2015.
Restricting imports usually leads to
A) a country producing beyond its production possibilities frontier. B) a country consuming even further beyond its production possibilities frontier. C) a reduction in exports and employment. D) a higher per capita level of real consumption.