Which of the following changes to the market in the graph shown could cause the price floor to become non-binding?
A. Supply could increase, and shift to the left.
B. Supply could increase, and shift to the right.
C. Demand could decrease, and shift to the left.
D. Supply could decrease, and shift to the left.
Answer: D
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In an oligopoly with differentiated products, firms ________
A) make positive economic profits B) incur losses C) earn zero economic profits D) do not face competition from its rivals
Of the $3 per pizza tax illustrated in the above figure, the
A) consumers pay $2 of the $3 per pizza tax. B) sellers pay $1 of the $3 per pizza tax. C) government collects $120 thousand in revenue from the pizza tax. D) All of the above answers are correct.
If prices and income in a two-good society double, what will happen to the budget line?
A) The intercepts of the budget line will increase. B) The intercepts of the budget line will decrease. C) The slope of the budget line may either increase or decrease. D) Insufficient information is given to determine what effect the change will have on the budget line but we know society is worse-off. E) There will be no effect on the budget line.
Joe and Jim purchase vegetables at a grocery store, but Jim also grows vegetables in his back yard. Regarding these two practices, which of the following statements is correct?
a. Only Joe's grocery store purchases are included in GDP. b. Only Joe's and Jim's grocery store purchases are included in GDP. c. Joe's and Jim's grocery store purchases are included in GDP. The vegetables from Jim's backyard garden are included at their market value. d. Joe's and Jim's grocery store purchases are included in GDP. The vegetables from Jim's backyard garden are included at their market value, if Jim provides this information.