Assume there is a price floor imposed on a good which is above the equilibrium price. Which of the following changes would reduce the size of the surplus?
a. An increase in demand.
b. A decrease in demand.
c. An increase in supply.
d. Any of the above.
a
Economics
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If a good is inferior, then the income elasticity of demand for that good is
a. positive and greater than 1 b. negative c. positive and less than 1 d. 0 e. perfectly elastic
Economics
The tax multiplier is smaller than the income multiplier
Indicate whether the statement is true or false
Economics