Which of the following is NOT a potential result of a price floor?
A) excess supply
B) price greater than free-market equilibrium price
C) Lower quality inputs are used, which increases marginal cost.
D) All of the above.
C
Economics
You might also like to view...
In September 1992, Great Britain changed its exchange rate system. How?
A) It abandoned the gold standard in favor of pegging to the U.S. dollar. B) It joined in with the new euro. C) It switched from an exchange rate peg to floating. D) It abandoned the sterling backing for the British pound.
Economics
In contrast to competitive firms, single-price monopolies
A) do not have to worry about market demand. B) sell only if demand is inelastic. C) can never incur a loss. D) can make an economic profit indefinitely. E) must take the price that is determined by the market demand and market supply.
Economics