A price floor set above a market equilibrium price causes
A) a surplus.
B) a shortage.
C) producers to receive lower prices.
D) consumers to pay lower prices.
A
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Describe Keynesian Economics as it pertains to GDP
What would be an ideal response?
Let MP = marginal product, P = output price, and W = wage, then the equation that represents the condition where a competitive firm would hire another worker is
A) P × MP > W. B) P × MP = W. C) P × W > MP. D) P × MP < W.
The income effect of a wage decrease examines the effect of the decrease in wage income on a worker's ability to purchase goods and services
Indicate whether the statement is true or false
When there are two large open economies, if desired international lending by the domestic country exceeds desired international borrowing by the foreign country, then
A) domestic saving must rise. B) domestic saving must fall. C) the world real interest rate must fall. D) the world real interest rate must rise.