Suppose that a market is initially in equilibrium. Then the government imposes a price floor above the equilibrium price. Which of the following will occur in the absence of a black market?
a. The market will remain in equilibrium.
b. The quantity sold will drop.
c. The quantity demanded will increase.
d. The quantity supplied will decrease.
e. An excess demand will develop.
B
You might also like to view...
When a person's income increases:
A. the individual's budget constraint shifts straight out, maintaining the same slope. B. the individual's budget constraint shifts straight in, maintaining the same slope. C. the individual's budget constraint rotates out and becomes flatter. D. the individual's budget constraint rotates in and becomes steeper.
John and Miguel are fishermen. When they go fishing, John consistently catches 2 or 3 fish per hour, while Miguel consistently catches 5 or 6 fish per hour. Miguel's __________ exceeds that of John
Fill in the blank(s) with correct word
If the prices of imported resources increase, then aggregate supply will decrease.
Answer the following statement true (T) or false (F)
Economics is the study of
A) how to get rich. B) how people allocate their limited resources to satisfy their unlimited wants. C) how people spend their income. D) why people want certain goods and services rather than other goods and services.