Other things equal, a price floor will reduce consumer surplus, but it will increase producer surplus if the government buys up any surplus at the price floor

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

True

Economics

You might also like to view...

If the value of the U.S. dollar changes from 1.2 euros to 1.4 euros, we would expect that the United States would experience a ________ in exports and a ________ in imports

A) rise; rise B) fall; fall C) rise; fall D) fall; rise

Economics

An increase in interest rate will ______ the quantity of money demanded for transactions and ______ the quantity of money demanded for speculation.

a) increase; increase b) increase; decrease c) decrease; increase d) decrease; decrease

Economics