Which of the following might explain why the government would create a price floor for a certain good?
a. The equilibrium price that would result in the market would be considered too high
b. The equilibrium price that would result in the market would be considered too low
c. The equilibrium quantity that would result in the market would be considered too high
d. The equilibrium quantity that would result in the market would be considered too low
e. The market will never achieve equilibrium on its own
B
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Of the following, which is CORRECT?
A) Nominal GDP does not change when the production of goods and services increases. B) Nominal GDP is not affected by changes in prices of goods and services. C) Nominal GDP increases when the prices of goods and services increase. D) Real GDP changes only when the prices of goods and services really change.
The growth rate of real GDP in Astoria is 7.5%. Assume the growth rate of velocity is constant at a rate of 5%
If Astoria wishes to decrease the inflation rate from the annual rate of 5.99% to a target rate of 4.5% and maintain its current growth rate of real GDP, what will the growth rate of the money supply need to be? A) 6.49%. B) 7%. C) 8%. D) 8.49%.
Which of the following would be considered a variable input in the short run? a. The size of a firm's plant
b. The acreage of an apple farmer's orchard. c. The production capacity of a machine. d. None of the above.
If an economy produces 4,000 units of output with a price level of $2 and with a velocity of money of 8, we know that the money supply must be:
A. $8,000. B. $4,000. C. $1,000. D. $2,000.