If the government removes a binding price floor from a market, then the price paid by buyers will
A. decrease, and the quantity sold in the market will increase.
B. decrease, and the quantity sold in the market will decrease.
C. increase, and the quantity sold in the market will decrease.
D. increase, and the quantity sold in the market will increase.
A. decrease, and the quantity sold in the market will increase.
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Discretionary fiscal policy is a policy that _____
a. is developed in secret b. applies to some states and not all states c. applies to only to some specific industries in an economy d. works automatically without public announcement or plan e. is an intentional change in taxation or government spending
The price-output combination that maximizes profits for a monopolist occurs at the point where
A) total revenues and total costs are equal. B) the difference between total revenues and total costs is the greatest. C) total revenues are the greatest. D) the elasticity of demand equals one.