A price floor will be binding only if it is set
A. equal to the equilibrium price.
B. either above or below the equilibrium price.
C. above the equilibrium price
D. below the equilibrium price
C. above the equilibrium price
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Refer to the above table. Suppose Buyer 2 leaves the market. What is the new market quantity of DVDs demanded at a price of $10?
A) 33 B) 25 C) 22 D) 8
Which one of the following is an example of discretionary fiscal policy used to correct a recessionary gap?
A) a tax decrease passed into law by Congress B) an increase in the money supply by the Federal Reserve C) a decrease in government expenditures approved by Congress D) an agreement among major banks to raise interest rates
The population R-squared is affected when heteroskedasticity is present in Var(u|x1, …, xk).?
Answer the following statement true (T) or false (F)
Recall the Application about the policies used by the European Union to support the agricultural sectors of is member countries to answer the following question(s). According to this Application, in recent years the European Union has reformed its agriculture policies by reducing or eliminating minimum prices. Ceteris paribus, these policy reforms would ________ excess supply by ________ prices.
A. reduce; raising B. reduce; lowering C. increase; raising D. increase; lowering