In a competitive market illustrated by the diagram below, a price floor of $25 per unit will result in:
A. A shortage of 200 units
B. A surplus of 200 units
C. A surplus of 250 units
D. A shortage of 250 units
B. A surplus of 200 units
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How does a consumer's budget set differ from his budget constraint? For a consumer with a given level of income, will the budget set have more combinations of goods or will the number of combinations be higher for the budget constraint?
What will be an ideal response?
The interest rate that describes how well a lender has done in real terms after the fact is called the
A) ex post real interest rate. B) ex ante real interest rate. C) ex post nominal interest rate. D) ex ante nominal interest rate.
Whenever the largest firm in a concentrated industry breaks into two equal sized parts, the four firm concentration ratio ___ and the Herfindahl-Hirschman Index ____: a. Will fall; will fall
b. Will fall; may fall or stay the same. c. May fall or stay the same; will fall. d. May fall or stay the same; May fall or stay the same.
If the cross-price elasticity of demand for SUVs with respect to the price of gasoline is -0.10, and gasoline prices rise by 18 percent, then SUV sales should, ceteris paribus,
A. Rise by 1.8 percent. B. Fall by 18 percent. C. Rise by 18 percent. D. Fall by 1.8 percent.