Lucinda is a farm owner who believes the market price for her crops is insufficient to cover her expenses and make a worthwhile profit. Which government action on farm goods would Lucinda most likely support?
a. price decreases
b. price ceilings
c. price floors
d. price maximums
c. price floors
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All of the following are characteristics of game theory except
A) payoffs that are the results of the interaction among players' strategies. B) rules that determine what actions are allowable. C) independence among players. D) strategies that players employ to attain their objectives.
The long-run equilibrium of monopolistic competition is characterized by
A) P = MC = ATC. B) P = MC > ATC. C) P = MR = MC. D) P = ATC > MC.
When consumer spending and consumption decrease, consumer confidence tends to
A. fall. B. rise. C. remain the same. D. be unpredictable.
If two or more markets are closely related,
A) a partial equilibrium analysis will tend to overstate the price impact of a supply shock. B) a partial equilibrium analysis will tend to accurately predict the price impact of a supply shock. C) a partial equilibrium analysis will tend to understate the price impact of a supply shock. D) they should be analyzed concurrently but using partial equilibrium analysis alone.