Price floors, when applied to agricultural markets, have
a. promoted the interests of consumers
b. reflected the government's desire for greater equality in the distribution of goods among consumers
c. created the need to print ration coupons
d. created excess supply, which meant that the government would have to buy the excess supply to keep the prices from falling below the price floor
e. created excess demand, which meant that the government had to prevent the price floor from rising above the equilibrium price
D
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Refer to Figure 29-3. Consider the market for U.S. dollars against the Japanese yen shown above. An event which could have caused the changes shown in the graph would be
A) an economic expansion in the United States. B) an increase in U.S. real income. C) a decrease in Japanese interest rates. D) speculators expect the dollar to depreciate in value in the near future.
An increase in the expected future domestic exchange rate causes the demand for domestic assets to ________ and the domestic currency to ________, everything else held constant
A) increase; appreciate B) increase; depreciate C) decrease; appreciate D) decrease; depreciate