Question
If a government eliminated an effective price floor in a market, all of the following would occur EXCEPT: The supply of the good would increase.
If a government eliminated an effective price floor in a market, all of the following would occur EXCEPT:
The supply of the good would increase.
The quantity demanded would increase.
Answer D: The quantity demanded would increase.
The quantity supplied would decrease.
Answer C: The quantity supplied would decrease.
The price would decrease.
Answer B: The price would decrease.
The surplus would be eliminated.
Answer A: The surplus would be eliminated.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Managerial Economics Theory Applications and Cases
Authors: Bruce Allen, Keith Weigelt, Neil A. Doherty, Edwin Mansfield
8th edition
978-0393124491, 393124495, 978-0039391277, 393912779, 978-0393912777
