A price floor in the cotton market will result in an excess supply unless
a. the excess demand for cotton is reduced to zero
b. it is immediately followed by a shift to the right in the demand curve that reduces the excess supply to zero
c. the excess supply of cotton is equal to the excess demand for cotton at the floor price
d. the supply is immediately stimulated to reduce the excess demand that results from the excess supply
e. the quantity demanded shifts to the right
B
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Two friends, one an engineer and the other an accountant, decide to form a partnership. If the accountant takes care of the books and the engineer runs the factory, they are likely to enhance the economy's productivity through:
A) scarcity. B) specialization of labor. C) a shift in the production possibilities curve. D) a movement along the production possibilities curve.
Wartime mobilization during World War I raised the shares of income going to labor. This increase continued through the 1920s
Indicate whether the statement is true or false