If the government establishes a price floor, it must also be prepared to
a. sell any additional goods created by the price floor
b. create ration coupons to allocate the goods among consumers
c. enter the market as an additional demander of the good
d. handle the resulting excess demand
e. create incentives for producers to remain in the market
C
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During the Great Depression:
A. overall GDP rose. B. investment increased, but consumption decreased. C. both consumption and investment decreased. D. investment fell, but consumption increased.
Assume that the price for lawn care has fallen and sales of lawn care services have also fallen. One can conclude that
A) the demand for lawn care service has decreased. B) the law of supply has been violated. C) lawn care services are deliberately charging low prices because they want to discourage people from maintaining their own lawns. D) the number of lawn care service companies has increased.