Which of the following statements is true of minimum wages?
A) Minimum wages are sometimes referred to as wage ceilings.
B) No state in the U.S. economy has ever enforced a minimum wage.
C) Minimum wages are normally set above the labor market clearing wage rate.
D) Minimum wages benefit firms and producers.
C
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According to the law of supply, producers will
A) change their consumption plans when the price of a good changes. B) change their supply when the price of a good changes. C) change their production plans when the price of a good changes. D) increase their quantity supplied when the price of a good decreases. E) decrease their quantity supplied when the price of a good increases.
It is often observed that the prices charged for gasoline by the various gas stations in a particular city tend to move together very closely. Is this an example of tacit collusion that should be prosecuted in the United States? Why or why not?
What will be an ideal response?