A price floor in the cotton market will result in an excess supply unless
a. the excess demand for cotton is reduced to zero
b. it is immediately followed by a shift to the right in the demand curve that reduces the excess supply to zero
c. the excess supply of cotton is equal to the excess demand for cotton at the floor price
d. the supply is immediately stimulated to reduce the excess demand that results from the excess supply
e. the quantity demanded shifts to the right
B
You might also like to view...
When someone is stressed the first phase is physiological, second is resistance and the last stage is:
a. Evaluation b. Exhaustion c. Clarity d. Symbolic reaction
Without reinsurance, insurance companies would be less likely to insure
A. against home fires. B. against home burglaries. C. potential terrorist targets. D. against auto accidents.
Holding all else constant, an increase in the preferences of Americans for Mexican goods will ________ the supply of dollars in the foreign exchange market and ________ the equilibrium Mexican peso/U.S. dollar exchange rate.
A. increase; decrease B. decrease; decrease C. increase; increase D. decrease; increase
The effect of government spending or tax cuts on national income is measured by the:
A. aggregator. B. output gap. C. multiplier. D. tax rate.