Which of the following observations would be consistent with the imposition of a binding price floor on a market? After the price floor becomes effective,
a. a smaller quantity of the good is bought and sold.
b. a larger quantity of the good is demanded.
c. a smaller quantity of the good is supplied.
d. the price falls below the equilibrium price.
a
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In the Harrod-Domar model, if the savings rate is 20% and the incremental capital output ratio is five, abstracting from depreciation, what is the implied growth rate?
What will be an ideal response?
The Equivalent Variation resulting from a quota is best defined as
A) the amount a consumer would pay to have the quota removed. B) the amount the consumer would need to voluntarily accept the quota. C) the amount a consumer would pay for the quantity specified by the quota. D) the loss in utility resulting from the quota.
The _________________ is a relationship between inputs and output that identifies the maximum output which can be produced per time period by each specific combination of inputs.
Fill in the blank(s) with the appropriate word(s).
Improvements in technology will shift the production possibilities curve outward.
a. true b. false