The price paid by buyers in a market will decrease if the government
a. imposes a binding price floor in that market.
b. increases a binding price ceiling in that market.
c. increases a tax on the good sold in that market.
d. decreases a binding price floor in that market.
d
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An increase in which of the following is most likely to cause the short-run aggregate supply curve to shift to the left?
A) Consumers' income B) The money supply C) Government spending D) The optimism of business firms E) The per unit cost of production
In the short run, if aggregate demand shifts to the left while the position of the short-run aggregate supply curve does NOT change, then
A) the level of economic activity rises. B) a recessionary gap occurs. C) there is no change in real GDP and the price level. D) an inflationary gap occurs.