A binding price floor creates
a. deadweight loss.
b. consumer surplus.
c. producer surplus.
d. deadweight gain.
a. deadweight loss.
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If the Fed increases the quantity of money and lowers the federal funds rate, real GDP ________ and the price level ________
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases E) increases; does not change
Refer to the information provided in Table 13.4 below to answer the question(s) that follow. Table 13.4Price ($)Quantity20.00118.00216.00314.00412.00510.006 8.007Refer to Table 13.4. If a monopoly faces the demand schedule given in the table and has a constant marginal and average cost of $12 per unit of providing the product, then the monopoly maximizes its profits by charging ________ per unit and selling ________ units of output.
A. $10; 6 B. $16; 3 C. $12; 5 D. $14; 4