In order to have an impact, a ________ must be set below the equilibrium price, and when this occurs, ________
A) price ceiling; consumer surplus increases
B) price floor; consumer surplus decreases
C) price ceiling; producer surplus decreases
D) price support; total revenue increases
E) price support; consumer surplus increases
C
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While waiting in line to buy two tacos at 80 cents each and a medium drink for 90 cents, Jordan notices that the restaurant has a value meal containing three tacos and a medium drink all for $3 . For Jordan, the marginal cost of the third taco would be:
a. zero. b. 50 cents. c. 80 cents. d. $1.
At a higher nominal interest rate, the demand for money decreases
a. True b. False Indicate whether the statement is true or false
If the Fed moves the economy upward along the short-run Phillips curve from an initial inflationary equilibrium, what is happening?
a. Unemployment is rising above the natural rate, output is decreasing, and inflation is decreasing. b. Unemployment is falling below the natural rate, output is decreasing, and inflation is increasing. c. Unemployment is rising above the natural rate, output is increasing, and inflation is decreasing. d. Unemployment is falling below the natural rate, output is increasing, and inflation is increasing. e. Unemployment is falling below the natural rate, output is increasing, and inflation is decreasing.
Which of the following will not cause the aggregate supply curve to shift?
a. an increase in capital stock b. a decrease in the number of workers c. a decrease in the amount of natural resource base d. a change in the price level e. an increase in the number of entrepreneurs