If a price ceiling is introduced in the market for milk below the market equilibrium price, then the producer surplus made by dairy farmers
A) will increase.
B) will decrease.
C) will not change.
D) might increase or decrease depending on whether the demand for milk increases or decreases.
E) might increase or decrease depending on whether the supply of milk decreases or increases.
B
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Which one of the following statements is true in the four-sector circular model?
a. Money flows from government to households for taxes. b. Money flows from foreign economies to households for exports. c. Money flows from government to firms for goods and services. d. Money flows from firms to foreign economies for exports. e. Money flows from households to foreign economies for resources.
Which of the following is not a property of isoprofit curves graphed in Probability of Injury (x-axis) versus Wage (y-axis) space?
A. Profit-maximizing firms are indifferent as to where they operate on any given curve. B. All points on each isoprofit curve yield the same level of profit. C. Isoprofit curves going up along the y-axis yield higher profits. D. Isoprofit curves going out along the x-axis yield higher profits. E. Isoprofit lines are upward sloping.