Both price floors and price ceilings lead to
a. shortages.
b. surpluses.
c. reductions in quality.
d. a reduction in the quantity traded.
D
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For the following questions, suppose an economy produces only pens and pencils, and that the quantity and price data is given by this table
pens pencils Year 1 quantity 15 10 Year 1 price $12 $12 Year 2 quantity 17 12 Year 2 price $14 $15 What is the real GDP in year 2 using base year 1? A) $418 B) $300. C) $360. D) $338.
For a monopsonist, the marginal factor cost is always:
a. equal to the wage rate. b. less than the wage rate. c. greater than the wage rate d. the same as the labor supply. e. the same as the labor demand.
A new technology that decreases production costs will shift the supply curve of a perfectly competitive firm to the left
a. True b. False Indicate whether the statement is true or false
Ceteris paribus, for a farmer, corn and wheat are
A. Substitutes in production. B. Unrelated in a farmer's decision. C. Complements in production; by-products. D. None of the choices are correct.