If government legislates a price floor that is below the equilibrium price
A. a shortage will develop.
B. a black market will soon develop.
C. a surplus will develop.
D. market price and quantity sold will be unaffected.
D. market price and quantity sold will be unaffected.
Economics
You might also like to view...
With peak-load pricing, a firm
A) charges more for a good during periods of high demand. B) charges more for a hotel room the higher up the mountain it is. C) charges less for a good during periods of high demand, because of regulatory reasons. D) is generally used during January and February.
Economics
An increase in government spending causes the:
a. Monetary base to fall. b. Monetary base to either rise or fall, depending on the state of the economy. c. No change in the monetary base. d. Monetary base to rise.
Economics