A market consequence of the establishment of a price floor program is that price will be:
a. too low, and an excess supply will result.
b. too low, and a shortage will result.
c. too high, and an excess supply will result.
d. too high, and a shortage will result.
e. below the market equilibrium price.
c
You might also like to view...
The current international monetary system is
a. a flexible exchange rate system b. a fixed exchange rate system c. a system combining fixed and flexible exchange rates d. a gold standard e. a gold exchange rate system
If a firm faces a downward-sloping demand curve, its marginal revenue is
a. less than its marginal cost b. greater than price c. less than price d. equal to price e. equal to its total revenue
If all firms in a perfectly competitive industry are earning a normal profit, then:
A. existing firms will exit the industry. B. new firms will enter the industry. C. there is no incentive for firms to enter or exit the industry. D. the market supply curve will shift to the left.
When the demand for coffee increases, ceteris paribus, the equilibrium price will also increase because
A. The market supply and demand curves do not intersect. B. A shortage exists at the old equilibrium price. C. Market demand must be upward-sloping. D. There must be a surplus of the good.