Explain what will happen when the government imposes a minimum price that is below the market equilibrium price. Why is this true?
What will be an ideal response?
The minimum price will have no impact on the market. This is true because the price floor will only have an impact when the market equilibrium price is below it. Firms and consumers will otherwise not change their behavior.
Economics
You might also like to view...
The horizontal axis in a graph
A) measures time in a scatter diagram. B) measures the quality of a variable. C) is named the y-axis. D) is named the x-axis.
Economics
The form of government debt that was created to allow more people to buy and hold government debt is the
a. Treasury bond b. Treasury bill c. Treasury note d. savings bond e. savings bill
Economics