Suppose the demand for milk is relatively inelastic. What happens to sales revenue if the government imposes a price floor above the free-market equilibrium price in the market for milk?
A) Sales revenue falls.
B) Sales revenue rises.
C) Sales revenue remains unchanged.
D) It cannot be determined without information on prices.
Answer: B
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Refer to Table 16-2. What are the total profits from both markets combined?
A) $50 B) $48 C) $18 D) $15
The procedure of determining the present value of payments to be received in the future is known as
a. compounding b. amortizing c. perpetuating d. nominalizing e. discounting
Savers in the financial system make decisions about how to save their money by following the basic principles of:
A. asset valuation. B. cost benefit analysis. C. rate of return on investments. D. risk valuation.
What is the immigration problem for DVCs?
A. Too many people are allowed to move from DVCs to IACs, and IAC policies tend to favor the movement of the most productive DVC workers B. Too many people are allowed to move from DVCs to IACs, and IAC policies tend to favor the movement of the least productive DVC workers C. Too few people are allowed to move from DVCs to IACs, and IAC policies tend to favor the movement of the most productive DVC workers D. Too few people are allowed to move from DVCs to IACs, and IAC policies tend to favor the movement of the least productive DVC workers