? If the government removes a binding price floor from a market, then the price paid by buyers will
a. increase, and the quantity exchanged will increase.
b. increase, and the quantity exchanged will decrease.
c. decrease, and the quantity exchanged will increase.
d. decrease, and the quantity exchanged will decrease.
Answer: c. decrease, and the quantity exchanged will increase.
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Efficiency in a market occurs when the production of the good is such that
A) marginal benefit exceeds marginal cost. B) marginal benefit equals marginal cost. C) marginal benefit is lower than marginal cost. D) the marginal cost stops increasing. E) marginal benefit exceeds marginal cost by the maximum amount possible.
This table shows individual demand schedules for a market.Price of GoodBarney's DemandBetty's Demand$0.002023$0.501818$1.001611$1.50148$2.00126$2.50105According to the table shown, what can be said of Betty and Barney's demand for this good?
A. Neither Betty's nor Barney's demand follows the law of demand. B. Barney's demand follows the law of demand, but Betty's does not. C. Betty's and Barney's demand both follow the law of demand. D. Betty's demand follows the law of demand, but Barney's does not.
Each of the following statements is true except
A. Most of the world's largest corporate mergers took place between American firms. B. There have been more large mergers in the U.S. in the communications industry than in any other industry. C. The corporate scandals in recent years were all caused by no more than half a dozen crooks. D. The most important piece of antitrust legislation is the Sherman Antitrust Act.
The international investment position is defined as
A) the total of all domestic assets owned by foreigners minus the total of all foreign assets owned by residents of the home country. B) the total of all domestic assets owned by foreigners plus the total of all foreign assets owned by residents of the home country. C) the total of all foreign assets owned by residents of the home country minus the total of all domestic assets owned by foreigners. D) the total of all foreign assets owned by residents of the home country times the total of all domestic assets owned by foreigners.