Suppose a price floor is imposed on eggs above their equilibrium price. The likely result will be:
A. a higher equilibrium price for eggs as the supply curve for eggs shifts left.
B. a lower equilibrium price for eggs as the demand curve for eggs shifts left.
C. a decrease in the quantity of eggs demanded.
D. an increase in the quantity of eggs demanded.
Answer: C
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If the price level rises and the money wage rate remains constant, what happens to the quantity of real GDP supplied? Along which aggregate supply curve does the economy move?
What will be an ideal response?
Private costs are:
a. the full resource costs of an economic activity. b. always less than social costs. c. the costs of an economic activity borne by the producer. d. all of these.
If the United Auto Workers union can obtain a substantial wage increase for auto workers, there will be
a. a decrease in the supply of automobiles, which is a shift to the right of the supply curve. b. a decrease in the supply of automobiles, which is a shift to the left of the supply curve. c. an increase in the supply of automobiles, which is a shift to the right of the supply curve. d. an increase in the supply of automobiles, which is a shift to the left of the supply curve.
The less the bend (or arc), or more linear the utility function is, the ________ risk averse the person is.
Fill in the blank(s) with the appropriate word(s).