If a binding price floor were placed in the market in the graph shown:
A. quantity demanded would exceed quantity supplied.
B. quantity supplied would exceed quantity demanded.
C. the demand curve would have to shift.
D. the supply curve would have to shift.
B. quantity supplied would exceed quantity demanded.
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If a central bank wishes to raise the foreign-exchange value of its currency, it will
A) buy domestic currency and sell foreign assets. B) sell domestic currency and buy foreign assets. C) attempt to reduce domestic interest rates. D) attempt to raise the domestic price level relative to foreign price levels.
According to the law of demand, when will higher corn prices reduce the quantity demanded of corn?
A. Always. B. When the supply of corn is fixed. C. When nonprice determinants, like income and the number of buyers, are unchanged. D. When there are no shortages or surpluses of corn.