A price floor creates a situation in which one party wins and another party loses, and the gains for the winner are equal to the losses for the loser
Indicate whether the statement is true or false
False
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The figure above shows that the lowest wage rate for which someone is willing to work is
A) $3 an hour. B) $5 an hour. C) $6 an hour. D) $7 an hour. E) $4 an hour.
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 remains unchanged. B) Sales revenue rises. C) Sales revenue falls. D) It cannot be determined without information on prices.
A strategy that produces the best result, no matter what strategy the opposing player follows, is known as the dominated strategy
a. True b. False Indicate whether the statement is true or false
The gains from trade within a price system is
A) the sum of consumer surplus and producer surplus. B) consumer surplus less producer surplus. C) consumer surplus divided by producer surplus. D) consumer surplus multiplied by producer surplus.