In order to be binding, a price floor
A) must lie below the free-market equilibrium price.
B) must coincide with the free-market equilibrium price.
C) must be high enough for firms to earn a profit.
D) must lie above the free-market equilibrium price.
D
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If occupational safety laws were changed so that firms no longer had to take expensive steps to meet regulatory requirements, we would expect
a. the demand for the products of this industry to increase. b. the market price of the products of this industry to decrease in the short run but not in the long run. c. the firms in the industry to make long-run economic profit. d. competition to force producers to pass the lower production costs on to consumers in the long run.
If the demand for coffee decreases as income decreases, coffee is a(n)
A. complementary good. B. normal good. C. substitute good. D. inferior good.