Price floors lead to market surpluses.
Answer the following statement true (T) or false (F)
True
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Which of the following statements best describes a consumer's budget line?
A) It shows all combinations of goods among which the consumer is indifferent. B) It shows the limits to a consumer's set of affordable consumption choices. C) It shows the desired level of consumption for the consumer. D) It shows the consumption choices made by a consumer.
The joining of firms that are producing or selling a similar product is
A) a conglomerate merger. B) a horizontal merger. C) a vertical merger. D) always an illegal merger.
Refer to the diagram. A decrease in supply is depicted by a:
A. move from point x to point y.
B. shift from S 1 to S 2 .
C. shift from S 2 to S 1 .
D. move from point y to point x.
Explain the Great Recession in terms of aggregate demand, before the recession and after the recession.
What will be an ideal response?