An effective price floor will:
A. force some firms in this industry to go out of business.
B. result in a product surplus.
C. result in a product shortage.
D. clear the market.
Answer: B
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Which of the following statements is TRUE?
A) Labor is always a variable input. B) Capital is always a fixed input. C) Materials are always variable inputs. D) None of the above.
The rate of capacity utilization is a principal determinant of autonomous investment
Indicate whether the statement is true or false
In which of the following situations would supply be the most elastic?
a. An auto parts manufacturer is operating at capacity. b. A real estate developer in Boston is looking to build condos on the waterfront. c. A furniture manufacturer is operating its factory 8 hours per day. d. A hotel has all of its rooms booked for each night of the next 3 months.
If Y and V are constant and M doubles, the quantity equation implies that the price level
a. more than doubles. b. changes but less than doubles. c. doubles. d. does not change