Related to the Economics in Practice on page 302: A pair of shoes at a local department store has a marked retail price of $80. These shoes are on a sale table where all items are priced at 25 percent off the retail price. The store is also having a promotion of an additional 25 percent off all sale-priced shoes. Based on these stackable discounts, what is the actual selling price of these shoes?

Suppose the equilibrium price of a gallon of milk is $4. If the government imposes a price floor of $5 per gallon of milk,

A) the quantity supplied of milk exceeds the quantity demanded. B) the quantity supplied of milk falls short of the quantity demanded. C) the supply increases. D) the market will not be affected. E) there will be a shortage of milk.

Which of the following statements regarding OPEC is false?

A) Because it sells a homogeneous product, since its formation in 1960 OPEC has been the clear leader when it comes to determining the price of crude oil. B) OPEC's membership includes countries from the Middle East, Africa, and South America. C) Over time, OPEC's ability to control the price of oil has been constrained by changes in consumer demand and increased production of oil by non-member countries. D) The cartel has not always been successful when it comes to preventing individual members from cheating on the agreed upon production quotas.