The demand curve for the output of a perfectly competitive firm is

One advantage of a floating exchange rate system compared to a fixed or managed float exchange rate system is

A) it is easier for central banks to control inflation. B) there is no need for government intervention. C) it allows greater exchange rate stability. D) it eliminates the possibility of depreciation during a recession.

Refer to the above figure. If the government set a price floor of $3.50 per gallon, there would be

A) an excess quantity demanded equal to 100,000 gallons. B) an excess quantity supplied equal to the distance BD. C) an excess quantity supplied equal to the distance BF. D) an excess quantity supplied equal to 100,000 gallons.