Assume there is a price floor imposed on a good which is above the equilibrium price. Which of the following changes would reduce the size of the surplus?
a. An increase in demand.
b. A decrease in demand.
c. An increase in supply.
d. Any of the above.
a
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The ________ states that in an ordinary election between two candidates, the candidates will position themselves in such a way that their platforms reflect the views of the voter in the middle
Fill in the blank(s) with correct word
For resources with upward-sloping supply curves:
a. earnings consist solely of economic rent. b. earnings consist of both transfer earnings and economic rent. c. earnings are called transfer earnings. d. earnings are called dividends. e. earnings consist entirely of interest payments.
Suppose that the percentage change in demand is 10%, the price elasticity of demand is 1, and the percentage change in the equilibrium price is 3.33%. What is the price elasticity of supply?
A. 0 B. 1 C. 2 D. 3
Which of the following is illustrated by the aggregate demand curve?
A. How real personal income varies with the price level. B. How real output varies with the inflation rate. C. How total quantity of output demanded varies with the average price level. D. How real personal income varies with the inflation rate.