The excess supply created when the government imposes a price floor
a. shifts the equilibrium price upward to the price ceiling level
b. is the difference between the quantity demanded at the old equilibrium price and quantity supplied at the price set by the price ceiling
c. is the difference between the quantity demanded at the price set by the price ceiling and quantity supplied at the old equilibrium price
d. is the difference between the quantity supplied and the quantity demanded at the price set by the price ceiling
e. is the difference between the old equilibrium price and the price set by the price ceiling
D
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Chuck Stake never eats vegetables, although he can afford to buy them. According to the economic way of thinking, Chuck
A) must have a serious physiological aversion to vegetables. B) was probably forced to eat them as a kid, and now hates them. C) believes the additional benefits from eating vegetables are outweighed by the additional costs. D) has studied economics enough to know that nobody needs to eat their vegetables.
Which of the following refers to a shift in the demand curve?
A) "This new advertising campaign should really increase our demand." B) "Let's drop our price to increase our demand." C) "We dare not raise our price because our demand will drop." D) "If new sellers enter the market, the demand for the product is bound to increase."
The demand for gasoline will respond more to a change in price over a period of five weeks than over a period of five years
a. True b. False Indicate whether the statement is true or false
Based on annual data from 2000-2010, the Gadget Company estimates that sales are growing according to a linear trend:
Q = 50,000 + 200t where t is time and t = 0 in 2000. a. Forecast sales for 2013. b. Do you see any problems with this forecasting method?