A side effect of a price floor set above the equilibrium price is:
a. the new price is below equilibrium price.
b. an excess supply of the good is created.
c. an excess demand for the good is created.
d. the supply of the good decreases.
e. the demand for the good increases.
b
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When the United States gives MFN status to China, it means that
A) China is treated better than other U.S. trading partners. B) China is treated the same as other U.S. trading partners. C) China is treated worse than other U.S. trading partners. D) China is better than all the nations in the WTO. E) China is legally bound to reciprocate.
Which is NOT true of Globalization
A. it refers to increasing economic and cultural interdependency amongst countries B. it results in the financial ruin of some countries C. it potentially increases economic well-being among all countries involved D. it results in increasing competition, specialization, transmission of ideas.
Firms in imperfectly competitive industries are price takers.
Answer the following statement true (T) or false (F)
When a purely competitive market is at its long-run equilibrium, then all of the following are true, except:
A. Price equals marginal cost, and they are equal to the lowest attainable average cost of production B. Marginal benefit of the last unit of the product equals the marginal cost of producing that unit C. Maximum willingness of buyers to pay for the last unit of the product equals the minimum acceptable price for the seller of that unit D. Combined amount of consumer and producer surpluses is at its minimum possible