Figure 4-15
In , suppose a price floor is established at $20.00. What is the result?
a.
a shortage of 10 units
b.
a surplus of 10 units
c.
a shortage of 20 units
d.
a surplus of 20 units
e.
there is no change from the situation that exists at the equilibrium price
e
You might also like to view...
Generally, economies of scope are present when
A) economies of scale are present in the production of two or more goods. B) economies of scale are constant in the joint production of two products. C) joint output is less from a single firm than could be achieved from two different firms each producing a single product (assuming equivalent production inputs in both situations). D) joint output is greater from a single firm producing two goods than could be achieved by two different firms each producing a single product (assuming equivalent production inputs in both situations).
Which of the following illustrates adverse selection?
a. Individuals sometimes mistakenly buy defective cameras. b. Individuals will not search for bargains for low cost items. c. Individuals know a lot about their family health history when they buy insurance. d. Individuals can choose whether to drive safely or not.
Refer to the following graph.
This set of cost curves is:
A. wrong because the average total cost and marginal cost curves are switched. B. correct. C. wrong because the average total cost and average variable cost curves are reversed. D. wrong because the AFC should always be downward-sloping.
Society will produce ________ if price and marginal cost are equated for all firms.
A. the minimum output B. the efficient mix of output C. no output D. the maximum output