1.The baby-boom after the World War II had caused the demand curve for baby food to shift rightward.

Select one:

True

False

2.The floor price is always set above the equilibrium price otherwise it would not work

Select one:

True

False

3.Zero economic profit means there is no profit in this business

Select one:

True

False

4.What is meant by the term ceteris paribus?

Select one:

a. Prices remain constant

b. All things vary

c. A downward-sloping demand curve

d. Other things remain constant.

5.Surpluses drive prices up; shortages drive prices down

Select one:

True

False