A price floor would be established in cases where the government believed the market equilibrium price would:
a. result in a surplus.
b. be too high.
c. result in a shortage.
d. be too low.
e. yield excess profits.
d
You might also like to view...
Consider two countries-country A and B. Both economies are exactly similar in all aspects except for one. There are well-defined property rights in country A, while there are no property rights in country B
Given this information, which of the following statements is likely to be true? A) Economy A is likely to grow faster than economy B. B) Economy B is likely to grow faster than economy A. C) Both economies are likely to grow at the same rate. D) None of the countries is likely to experience any growth in GDP.
Inflation caused by continually decreasing short-run aggregate supply is
A) demand-pull inflation. B) demand-push inflation. C) cost-push inflation. D) cost-pull inflation.