A government sometimes creates an excess supply of a product by setting a minimum price at which the product may be sold to consumers. This is sometimes called a
A) price ceiling. B) subsidy. C) tax. D) price floor.
D
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Which of the following would cause the short-run aggregate supply curve to shift to the left?
A) an increase in inflation expectations B) a decrease in interest rates C) a technological advance D) an increase in the price level
An increase in total spending in the economy will shift the aggregate demand curve to the left
a. True b. False Indicate whether the statement is true or false
Spending VCU4 on real-world goods and services causes the nation's:
a. Monetary base to remain the same. b. M2 money supply to fall. c. M2 money multiplier to fall. d. Monetary base to rise.
If the demand increases in a perfectly competitive market, firms will likely:
A. set prices artificially higher permanently. B. have to engage in more advertising in order to further stimulate the increase in demand. C. enter the market in hopes of capturing some profits. D. experience a loss due to increased competition.