A surplus of a good could possibly be eliminated by:
A. a sufficient increase in supply keeping price constant.
B. the removal of a price floor.
C. the removal of a price ceiling.
D. a sufficient decrease in demand keeping price constant.
Answer: B
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Refer to the above figure. Which panel demonstrates the law of supply?
A) Panel A
B) Panel B
C) Panel C
D) Panel D
What is the term for the contract that maximizes the principal's payoff subject to the constraint that the principal lacks the agent's private information?
a. First best b. Second best c. Third best d. Pareto optimum
When a regulatory commission of a public utility, such as an electric company, chooses a fair price as the regulated price, it chooses P = MC
Indicate whether the statement is true or false
The monetary and fiscal stimulus response to the Great Recession resulted in an immediate increase in real GDP
a. True b. False Indicate whether the statement is true or false