A price floor will result in
a. a decrease in price if the price floor is below the market price.
b. a decrease in price if the price floor is above the market price.
c. an increase in price if the price floor is above the market price.
d. the same price as the market price.
c. an increase in price if the price floor is above the market price.
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How is the separation of ownership from control related to the principal-agent problem?
What will be an ideal response?
The "excess" growth rate of the money supply is the growth rate of money
A) plus the long-run growth rate of velocity. B) minus the long-run growth rate of velocity. C) plus the long-run growth rate of real GDP. D) minus the long-run growth rate of real GDP.
If a firm is a price taker, then its marginal revenue will always equal
A) price. B) total cost. C) zero. D) one.
You are a financial advisor and a client tells you he is concerned about the amount of risk in his portfolio. Assuming your client hasn't already done them, what two things can you suggest to reduce your client's risk? What additional information about reducing risk should you provide?