With a price floor:
A. producer surplus will fall if profits fall.
B. producer surplus will fall if profits rise.
C. producer surplus will increases if profits fall.
D. producer surplus always increases.
A. producer surplus will fall if profits fall.
You might also like to view...
A forecaster used the regression equationQt = a + bt + c1D1 + c2D2 + c3D3and quarterly sales data for 1996 I - 2013 IV (t = 1, ..., 64) for an appliance manufacturer to obtain the results shown below. Q is quarterly sales, and D1, D2 and D3 are dummy variables for quarters I, II, and III. 
In any given year, quarterly sales tend to vary as follows:
A. QI > QII > QIV > QIII B. QIII > QIV > QII > QI C. QII > QIII > QIV > QI D. QIII > QII > QI > QIV E. QI > QII > QIII > QIV
Which characteristic of a monopolistically competitive firm causes it to have zero profits in the long run?
A. There are no barriers to entry. B. The firm has a slight control of its price. C. The firm sells a differentiated product. D. All of these cause the monopolistically competitive firm to have zero profits in the long run.
Which of the following could be considered a macroeconomic issue?
A. Twinkies goes bankrupt, and the entire snack industry experiences losses. B. The unemployment rate in the US falls to 7.5 percent from 7.7 percent during the month of June. C. The decision of Microsoft to offer a free upgrade to Windows 10. D. T-Mobile and MetroPCS finalize a merger.
The demand for normal goods follows the law of demand because of
A. risk-aversion by consumers. B. the income effect only. C. the substitution effect only. D. both the substitution and income effects.