When a price floor is set above the equilibrium price, quantity supplied will exceed quantity demanded, resulting in
a. excess demand or shortages.
b. excess supply or surpluses.
c. equilibrium prices.
d. price controls.
b. excess supply or surpluses.
You might also like to view...
When two countries choose to use a new currency, they are
A) participating in a monetary union. B) dollarizing. C) forming an optimal currency area. D) increasing their monetary autonomy.
A country has a comparative advantage in the good that it can produce
a. at a lower cost in terms of other goods. b. using fewer resources than its trading partner uses. c. at a lower cost than its trading partner can produce. d. using more resources than its trading partner uses.
The answer is: "A tax on imports." What is the question?
A) What is comparative advantage? B) What is a quota? C) What is a tariff? D) What reduces consumers' surplus? E) c and d
Which of the following is true about oligopoly?
A) There are few buyers B) There is no ability to set price C) There are many sellers D) none of the above