A price floor (support price) set above equilibrium:
a. is a minimum legal price set by government above equilibrium.
b. causes the quantity supplied to exceed the quantity demanded.
c. creates a surplus.
d. can represent the effect of a minimum wage.
e. all of these.
e
Economics
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What is the slope of the line in the graph?
A) +1/2 B) -1/2 C) +2 D) -2 E) -3/4
Economics
Which of the following statements is true if interest rates were zero?
A) The demand for bonds increases because bonds will be a more attractive alternative to money. B) People will hold their wealth in the form of money rather than in bonds. C) Bonds and money will become perfect substitutes since both are non-interest earning assets. D) The supply of bonds will increase.
Economics