One of the problems created by price floors set above the equilibrium is:

a. consumers complain about high prices.
b. firms don't have incentives to reduce costs.
c. the creation of surplus.
d. how to cope with the shortages.
e. the impact on firm profitability.


c

Economics

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Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.

A. expansionary; higher; higher B. expansionary; higher; potential C. recessionary; higher; potential D. recessionary; lower; lower

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What is a voluntary export restraint (VER)?

What will be an ideal response?

Economics

A firm's short-run cost functions depend primarily on the firm's production function and the prices of the inputs to production

Indicate whether the statement is true or false

Economics

Costs not associated with a specific activity are

a. variable costs b. semivariable costs c. fixed costs d. indirect costs e. hidden costs

Economics