A market consequence of a price floor is that the price consumers pay with the floor when compared to the price they paid without the floor,
a. falls so that there is an excess supply
b. falls so that there is an excess demand
c. increases so that there is an excess supply
d. increases so that there is an excess demand
e. falls so that the new equilibrium price is lower than the old
C
Economics
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If the LM curve is vertical, then
A) there is partial "crowding out" of an increase in government expenditures. B) the increase in the money supply will have no impact on the level of real GNP. C) the demand for money is highly sensitive to the interest rate. D) the velocity of money is constant.
Economics
Technology can enable producers to economize on:
a. labor b. capital c. land d. any of the above.
Economics