Refer to the above figure. If the government set a price floor of $3.50 per gallon, there would be
A) an excess quantity demanded equal to 100,000 gallons.
B) an excess quantity supplied equal to the distance BD.
C) an excess quantity supplied equal to the distance BF.
D) an excess quantity supplied equal to 100,000 gallons.
D
You might also like to view...
A consumer's budget constraint is
A) the limited income that a consumer has to spend on goods and services. B) the extent to which one's preferences are limited by one's income. C) the price ratio a consumer faces in the marketplace. D) the rate at which the consumer must give up one good to purchase an additional unit of the other goods in the market.
If energy use per capita in developed countries had leveled off while GDP per capita had risen, then it must mean that:
A. Energy efficiency had risen B. Energy efficiency had fallen C. The energy-use-to-GDP ratio had risen D. The GDP-to-energy-use ratio had fallen