Which of the following is true?
i. A price support is inefficient.
ii. A price floor set above the equilibrium price creates a surplus.
iii. A price ceiling set above the equilibrium price creates a black market.
A) only i
B) only ii
C) only iii
D) i and ii
E) ii and iii
D
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The symmetry principle states that
A) the poorest person must be made as well off as possible. B) income should be transferred from the rich to the poor up to the point of complete equality. C) resources should be common property. D) people in similar situations must be treated similarly.
Suppose that when the price of oranges decreases, Sarita decreases her purchases of peaches. To Sarita,
A) oranges and peaches are normal goods. B) oranges and peaches are substitutes. C) oranges and peaches are complements. D) oranges and peaches are inferior goods.