If the government removes a binding price floor from a market, then the price paid by buyers will
A. decrease, and the quantity sold in the market will increase.
B. decrease, and the quantity sold in the market will decrease.
C. increase, and the quantity sold in the market will decrease.
D. increase, and the quantity sold in the market will increase.
A. decrease, and the quantity sold in the market will increase.
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If the Fed raises the U.S. interest rate, the demand for dollars ________ and the exchange rate ________
A) increases; rises B) increases; falls C) decreases; rises D) decreases; falls
What is the effect on real GDP per person if labor productivity increases?
What will be an ideal response?
Explain the combined effects of these events on U.S. real GDP and the price level, starting from a position of long-run equilibrium
What will be an ideal response?
Refer to Figure 10-5. Which of the following statements is true?
A) Bundles r and w are not affordable. B) The consumer gets more utility from bundle r than from bundle v. C) The consumer gets less utility from bundle w than from bundle v. D) Bundles r, s, t, and u all cost the same.