A consequence of imposing a price floor is that
a. the new price (or price floor) is below the old equilibrium price
b. an excess supply of the good is created at the floor price
c. an excess demand for the good is created at the floor price
d. the supply of the good decreases
e. the demand for the good increases
B
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The government provides public education because
A) public education is a public good. B) public education is non-rival and nonexclusive. C) private education is rival and exclusive. D) public education combats the negative externalities of private education. E) public education provides positive externalities.
Robert Lucas and his followers have argued that the Philips curve appears to be:
a. a vertical line. b. a horizontal line. c. a negatively-sloped curve. d. a positively-sloped curve.
?
Exhibit 8-3 Demand and cost curves for GeneTech, a monopolist with a patented vaccine
Consider Exhibit 8-3. Suppose GeneTech's patent expires and the market for the vaccine becomes perfectly competitive. Which of the following price and quantity combinations would be most likely?
A. $45 per dose and 100 doses per hour B. $40 per dose and 200 doses per hour C. $35 per dose and 300 doses per hour D. $28 per dose and 450 doses per hour
A simultaneous game is said to exist when:
A. firms are playing pricing games in different markets at the same time. B. firms choose their strategies at the same time as their rivals. C. firms can set multiple prices for the same good at the same time. D. strategies are set without regard to possible interactions in future time periods.