Suppose the government imposes a price support that is above the equilibrium price. As a result,
A) total revenue increases.
B) consumer surplus increases.
C) the marginal cost of the last unit produced decreases.
D) the government has effectively imposed a price ceiling.
E) the subsidy the government pays decreases.
A
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Which of the following statements supports the passive approach to close a recessionary gap?
a. It is likely that policies will be subject to time lags. b. Prolonged unemployment may cause the economy's potential real GDP to fall. c. Workers' skills may grow rusty during a prolonged recession d. It is likely that unemployed workers will drop out of the labor force. e. Firms may neglect their capital stock during a prolonged recession.
The following scatterplot displays the 1990 per capita income versus number of deaths due to traffic accidents per 100,000 people for each of the 50 states plus the District of Columbia.Which of the following is a plausible value for the correlation coefficient between weight and MPG?
A) +0.2 B) –0.5 C) +0.7 D) –1.0