A price floor is
a. a maximum price above which the good cannot be legally bought or sold
b. the lowest price buyers are willing to pay for a good.
c. a minimum price below which the good cannot be legally bought or sold.
d. a minimum price above which the good cannot be legally bought or sold.
c. a minimum price below which the good cannot be legally bought or sold.
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Which of the following statements is correct?
A. Theory and hypothesis are interchangeable terms for the same thing. B. A hypothesis may result from a tested and confirmed theory. C. A theory may result from a tested and confirmed hypothesis. D. A hypothesis is a theory whose formulation relies on mathematics.
What effect does an increase in the MPC have on the slope of the AE curve?
What will be an ideal response?
If a bottle of fine French wine costs US$250 in the U.S., 2500 rand in South Africa, there are no transaction costs, and the exchange rate is 20 rand/US$, then
A) there is an arbitrage opportunity by buying the wine in the U.S., and selling it in South Africa and the price in South Africa will drop. B) there is an arbitrage opportunity by buying the wine in South Africa., and selling it in the U.S. and the price in the U.S. will drop. C) here is an arbitrage opportunity by buying the wine in South Africa., and selling it in the U.S. and the price in the U.S. will rise. D) there is no arbitrage opportunity.
If Tom does not tattle, what would Sarah's best response be
a. Hit b. Not hit c. Run d. Hide