Suppose the market price for one unit of a good is $12.50, and 50 units will be exchanged at that price. If a price floor is imposed at $12.00 per unit, the price will:
a. fall to $12.00, and quantity will fall below 50 units
b. fall to $12.00, and quantity will remain at 50 units.
c. remain at $12.50, and quantity will rise above 50 units.
d. remain at $12.50, and quantity will remain at 50 units.
d
Economics
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Dell lowers the price of their PCs by 10 percent. As a result, the quantity of Gateway computers demanded at the current price decreases by 12 percent
What is the cross elasticity of demand for Gateway computers with respect to the price of Dell computers? A) -1.20 B) -0.83 C) 1.20 D) 0.83
Economics
The fact that any pareto efficient equilibrium can be achieved through competition by adjusting endowments is called
A) the second welfare theorem. B) the first welfare theorem. C) the third welfare theorem. D) That is not possible.
Economics