A price floor (set above the equilibrium price) on rice will
A) force otherwise profitable farmers out of business.
B) result in a shortage of rice.
C) result in a surplus of rice.
D) clear the market for rice.
E) both a and b
C
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What will be an ideal response?
What would happen if money did not exist?
If the amount of money in circulation is $400 billion and the nominal GDP is $800 billion, the velocity of money is
a. 0.5. b. 2. c. 4. d. 8.
Suppose the demand for meals at a medium-priced restaurant is elastic. If the management of the restaurant is considering raising prices, it can expect the total revenues the restaurant earns to:
A) increase. B) stay the same. C) decrease. D) cannot be determined with the information given.