How will a decrease in price tend to affect supply?
a. Supply will increase
b. Supply will decrease.
c. Supply will not change.
d. It is uncertain.
c
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Limited liability can best be defined as the legal provision that
A) shields owners of a corporation from losing more than what they invested in a firm. B) protects bond holders from being sued by other creditors. C) gives holders of preferred stock priority over holders of common stock. D) reduces the exposure of sole proprietorships to law suits.
If the price of a competitive firm's output increases, the firm responds in the short run by demanding more labor
What will be an ideal response?
Suppose residents of Toadhop live on the Quabache River, a river prone to flooding. Suppose there are 1000 (type A) people who value flood control more than the 1000 (type B) people. Type A Demand QD = 100 ? P Type B Demand QD = 50 ? P Where Q measures the quality of flood control. If the price of a unit of flood control is $100,000 and the citizens of Toadhop gather for a townhall meeting to
find the socially optimal level of flood control, and they are successful, how much will type B individuals contribute per unit of flood control? a. 25 b. 50 c. 75 d. 100
If a price floor is not binding, then a. there will be a surplus in the market
b. there will be a shortage in the market. c. there will be no effect on the market price or quantity sold. d. the market will be less efficient than it would be without the price floor.