Refer to the above figure. A price control has been set which has led to a surplus. This means that a
A) price ceiling has been set at P1.
B) price floor has been set at P1.
C) price ceiling has been set at P2.
D) price floor has been set at P2.
B
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The Japanese demand curve for dollars is downward-sloping because a:
a. higher number of yen per dollar means U.S. goods are cheaper in Japan. b. lower number of yen per dollar means U.S. goods are cheaper in Japan. c. lower number of yen per dollar means U.S. goods are more expensive in Japan. d. lower number of yen per dollar means U.S. goods are less expensive in the U.S.
The local labor market for lawn-mowing workers is initially in equilibrium. These workers are also able to clean swimming pools and have no preference for one job over the other. If the wage rate for pool cleaning rises, which of the following would occur in the lawn-mowing labor market?
a. Both labor demand and labor supply will drop, leading to a lower wage rate and lower employment. b. Both labor demand and labor supply will rise, leading to a higher wage rate and lower employment. c. Labor supply will drop, leading to a higher wage rate and lower employment. d. Labor supply will drop, leading to a lower wage rate and lower employment. e. Labor demand will drop, leading to a lower wage rate and lower employment.