When the government sets a price floor which is above the equilibrium price
A) a surplus will develop.
B) a shortage will develop.
C) the equilibrium price will be maintained.
D) a price ceiling will follow.
A
Economics
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Relative PPP indicates that
A) the exchange rate between any two currencies is equal to the ratio of their price indexes. B) the same good sells for the same price internationally. C) the percentage change in the exchange rate is equal to the inflation differential between the domestic and foreign country. D) relative prices determine exchange rates.
Economics
A collusion occurs when firms act together to reduce output and keep prices high
a. True b. False Indicate whether the statement is true or false
Economics