For many years, dairy farmers would milk their cows and bring the milk to market. After buyers and sellers negotiated all sales, the farmers dumped large quantities of milk into rivers. What does it tell us about that milk market? A free market would not have created an ______, so that in this case there must have been a _________
a. opportunity to dump milk; special permit
b. excess supply; price floor
c. excess demand; price floor
d. excess supply; price ceiling
e. excess demand; price ceiling
B
You might also like to view...
A theory can best be defined as
A. an untested assertion of untested fact. B. a set of assumptions that simplify the real world. C. the opinion of a reliable person who studies a subject or discipline. D. a deliberate simplification of factual relationships that attempts to explain how those relationships work. E. the accumulation of knowledge that has been verified by the scientific community.
As tax rates rise linearly, DWL also rises linearly. ?
Answer the following statement true (T) or false (F)
Which of the following is NOT a divisible good?
A) gasoline B) tap water C) electricity D) movies
A capital inflow occurs when:
A. money saved domestically is invested in another country. B. money saved in another country finances domestic investment. C. there is a negative difference between capital inflows and capital outflows for a country. D. there is a positive difference between capital inflows and capital outflows of a country.