Author Question: Assume there is a price floor imposed on a good which is above the equilibrium price. Which of the ... (Read 44 times)

mrsjacobs44 · **on:** Jun 30, 2018

Assume there is a price floor imposed on a good which is above the equilibrium price. Which of the following changes would reduce the size of the surplus?
a. An increase in demand.
b. A decrease in demand.
c. An increase in supply.
d. Any of the above.

Question 2

Barter system is less desirable than using money for exchange because:
a. it is a more inefficient and a time-consuming process.
b. gold and silver are risky and inconvenient to transport.
c. it tends to promote inflation.
d. gold and silver are relatively scarcer than other commodities.