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Author Question: If a country produces only two goods, then it is not possible to have a comparative advantage in the ... (Read 140 times)

jerry coleman

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on: Jun 29, 2018
If a country produces only two goods, then it is not possible to have a comparative advantage in the production of both those goods.
 
  Indicate whether the statement is true or false

Question 2

What is the difference between a price ceiling and a price floor? Compared to the competitive equilibrium price, where must price ceilings and price floors be set to have an effect on the market.
 
  What will be an ideal response?
Foundations of Microeconomics ¦ Bade, Parkin ¦ 8th Edition
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ladyjames123

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Reply #1 on: Jun 29, 2018
Answer to Question 1

TRUE

Answer to Question 2

A price ceiling is a legally determined maximum price that sellers may charge for a good or service. A price floor is a legally determined minimum price that sellers may receive for a product or service. To have an effect on a market, price ceilings must be set below the competitive equilibrium price, and price floors must be set above the competitive equilibrium price.


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