A price floor
A) changes the equilibrium price if it is imposed in black markets.
B) changes the price and quantity if it is set below the equilibrium price.
C) changes the price and quantity if it is set above the equilibrium price.
D) does not create a black market if it is set above the equilibrium price.
E) changes the price and quantity only if it equals the equilibrium price.
C
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A large increase in the supply of HD-TV sets occurs simultaneously with a smaller decrease in its demand. As a result, the equilibrium price will ________ and the equilibrium quantity will ________.
A. decrease, increase B. increase, decrease C. decrease, decrease D. increase, increase
Four possibilities have probabilities 0.4, 0.2, 0.2 and 0.2 and values $10, $20, $30, and $40 respectively. The expected value is:
a. $22 b. $24 c. $26 d. $28
Beach resorts raise their prices during the summer months and yet more people book rooms at those times. Is this a violation of the law of demand?
The selling power of money is the rate at which it exchanges for goods and services
Indicate whether the statement is true or false