What is enacted when discontented sellers, feeling that prices are too low, appeal to legislators to keep prices from falling?
A. Rent controls
B. Price ceilings
C. Price floors
D. Subsidies
Answer: C. Price floors
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If the price elasticity of demand for chocolate is -2.0 what should we expect would happen to consumption of chocolate if the price falls by 10%? What about a 50% decrease?
What will be an ideal response?
When the nominal interest rate is not constant, an increase in the growth rate of the money supply ________ the inflation rate, and ________ the debt-to-GDP ratio
A) increases; increases B) increases; decreases C) increases; has an ambiguous effect on D) decreases; increases
The four-firm concentration ratio
A) indicates the total profitability among the top four firms in an industry. B) is an indicator of the degree of monopolistic competition. C) indicates the presence and intensity of an oligopoly market. D) is used by the government as a basis for anti-trust cases.
________: the assumption that all other factors that might affect demand are held constant during the time period
Fill in the blank(s) with correct word