Suppose a price floor is set by the government above the market equilibrium price. Which of the following will result?
a. There will be a surplus.
b. The quantity demanded will exceed the quantity supplied.
c. The demand curve will shift to the left.
d. None of these.
a
Economics
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Consider the market for bicycles. If a dealer cuts prices by 10 percent and sells 20 percent more bikes, then demand for bicycles is:
a. inelastic, and total revenue will increase. b. elastic, and total revenue will increase. c. inelastic, and total revenue will decrease. d. elastic, and total revenue will decrease. e. unit elastic, and total revenue will remain the same.
Economics
Which of the following industries most closely approximates the oligopoly model?
a. dry cleaning b. fast food c. automobile manufacturing d. agricultural produce
Economics