A price floor is a price set below equilibrium by government and it creates a shortage

a. True
b. False
Indicate whether the statement is true or false

False

Economics

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A monopoly:

A. is constantly threatened by the entry of new firms. B. is constrained by demand. C. is constrained because its decisions cannot affect market price. D. faces a horizontal demand curve.

Economics

A tariff imposed on imported shoes will cause the domestic price of shoes to ________ and the domestic production of shoes to ________.

A. increase; decrease B. decrease; decrease C. increase; increase D. decrease; increase

Economics