Price floors
A) provide free market incentives for producers.
B) create surpluses by setting the price above equilibrium.
C) create shortages by setting the price above equilibrium.
D) are used by advocates of the free market.
B
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In the country of Marzipana, total consumption in Year 1 was $56,000 million and in Year 2 was $60,000 million. It has been observed that each time disposable income changes in this country by $100, consumption changes by $70 . Using this information compute the change in disposable income from Year 1 to Year 2
a. Disposable income increased by $2,800 million in Year 2. b. Disposable income decreased by $2,000 million in Year 2. c. Disposable income increased by $2,000 million in Year 2. d. Disposable income increased by $4,500 million in Year 2. e. Disposable income decreased by $2,600 million in Year 2.
In a competitive industry, each firm has a cost function 
(for a given set of input prices). Demand for the industry's output is 
. The (long run) equilibrium number of firms is
A. 120 B. 58 C. 46 D. 34 E. 29 F. 12 G. 2 H. None of the above