If a price floor is set above the equilibrium price,
A. quantity demanded will equal quantity supplied.
B. there will be a surplus.
C. the floor will be ineffective.
D. there will be a shortage.
Answer: B
Economics
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Lowincomesville is a poor town. The mayor has decided to impose a law to cut all rental rates on apartments in half and to fix them at this level. Will this help the poor? Why or why not? Be sure to distinguish between the short run and the long run
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If business inventories equal $40 billion at the beginning of the year and $55 billion at the end of the year, then, assuming no other changes, GDP must have:
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Economics