Government-created price floors are typically imposed to
a. help consumers
b. help producers
c. raise tax revenue
d. shift the supply curve to the left
e. shift the demand curve to the right
B
You might also like to view...
A 2005 U.S. Supreme Court ruling was considered very controversial because the justices cited international opinion regarding
a. human trafficking. b. undocumented immigrants. c. abortion. d. the death penalty.
"The price of compact fluorescent light bulbs fell because of improvements in production technology. As a result, the demand for incandescent light bulbs decreased
This caused the price of incandescent light bulbs to fall; as the price of incandescent light bulbs fell the demand for incandescent light bulbs decreased even further." Evaluate this statement. A) The statement is false because the demand for incandescent light bulbs would increase as the price of compact fluorescent light bulbs fell. B) The statement is false because it confuses the law of demand with the law of supply. C) The statement is false. A decrease in the price of compact fluorescent light bulbs would decrease the demand for incandescent light bulbs, but a decrease in the price of incandescent light bulbs would not cause the demand for incandescent light bulbs to decrease. D) The statement is false because compact fluorescent light bulbs producers would not reduce their prices as a result of improvements in technology; doing so would reduce their profits.