Which of the following will occur if a legal price floor is placed on a good below its free market equilibrium?
A. Surpluses will develop
B. Shortages will develop
C. Underground markets will develop
D. The equilibrium price will ration the good
E. The quantity sold will increase
D. The equilibrium price will ration the good
Economics
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Discuss the meaning of the phrase of supply-side economics, discussing how it is similar and different from the traditional classical model. Make sure to discuss the role of the Laffer curve in supply-side theory
What will be an ideal response?
Economics
Using the income approach, an indirect business tax is a(n):
a. sales tax. b. excise tax. c. license fee. d. all of these.
Economics