To affect the market outcome, a price floor
A) must be set above the price ceiling. B) must be set above the legal price.
C) must be set above the black market price. D) must be set above the equilibrium price.
D
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Using the formula for an infinite sum, if "r" designates the reserve ratio, the 1 / reserve ratio would equal
A) (1 - r). B) 1 / (1 - r). C) r / (1 - r). D) 1 / [1 - (1 - r)].
Paul is looking for a used washing machine. He has posted his requirement in an exchange Web site and has also mentioned the maximum amount that he is willing to pay for it
If his willingness to pay is lower than the price of good-quality used washing machines, what is likely to happen?
Compared with a perfectly competitive market with similar cost conditions, a monopolist will have:
a. a higher output and a lower price. b. a lower output and a lower price. c. a higher output and a lower price. d. a lower output and a higher price. e. equal output and a higher price.
The law of increasing relative costs, depicted by the concavity of the production possibilities frontier, is most closely related to the
A. downward slope of the demand curve. B. upward slope of the demand curve. C. downward slope of the supply curve. D. upward slope of the supply curve.