If a binding price floor is imposed on the market for eBooks, then
a. the demand for eBooks will decrease.
b. the supply of eBooks will increase.
c. a surplus of eBooks will develop.
d. All of the above are correct.
c
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Refer to Figure 14.2. The substitution effect of the wage decrease on the amount of hours of leisure is:
A) L1 to L0. B) L0 to L1. C) L1 to L2. D) L2 to L0. E) none of the above
In many rural areas, electric generation and distribution utilities were initially set up as cooperatives in which the electricity customers were member-owners. Like most cooperatives, the objective of these firms was to:
A) maximize profits for the member-owners. B) maximize total revenue that could be redistributed to the member-owners. C) operate at zero profit in order to provide low electricity prices for the member-owners. D) minimize the costs of production.