Explain what will happen when the government imposes a minimum price that is below the market equilibrium price. Why is this true?
What will be an ideal response?
The minimum price will have no impact on the market. This is true because the price floor will only have an impact when the market equilibrium price is below it. Firms and consumers will otherwise not change their behavior.
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Refer to the table above. What is the market supply of labor per week when the wage rate is $50?
A) 12 hours B) 30 hours C) 50 hours D) 71 hours
Sole proprietorships produce more goods and services than does any other form of business organization
a. True b. False
What is the cyclical deficit, and when is it appropriate to have such a deficit? Why?
What will be an ideal response?
You are the CEO of a U.S. firm considering building a factory in Chile. If the dollar appreciates relative to the Chilean peso, then other things the same
a. it takes fewer dollars to build the factory. By itself building the factory increases U.S. net capital outflow. b. it takes fewer dollars to build the factory. By itself building the factory decreases U.S. net capital outflow. c. it takes more dollars to build the factory. By itself building the factory increases U.S. net capital outflow. d. it takes more dollars to build the factory. By itself building the factory decreases U.S. net capital outflow.