A price floor that sets the price of a good above market equilibrium will cause
a. a decrease in quantity demanded of the good.
b. an increase in quantity supplied of the good.
c. a surplus of the good.
d. all of the above.
D
You might also like to view...
Assuming the price level has not changed, how would an increase in the aggregate demand affect real GDP?
A) It only changes with changes in exports. B) It increases. C) It only changes with changes in imports. D) It decreases.
An increase in the expected future price of inputs will cause:
A. the short-run aggregate supply curve to shift to the left. B. the aggregate demand curve to shift to the right. C. a movement rightward along the short-run aggregate supply curve. D. the long-run aggregate supply curve to shift to the left.
The longer the time period considered, the more the elasticity of supply tends to _______.
a. decrease b. remain constant c. increase d. converge to zero
Which of the following statements about explicit costs is true?
A. They appear on the firm's balance sheet. B. They are the only costs that matter to business owners. C. They usually exceed implicit costs. D. They are difficult to measure.