« previous next »

Author Question: A price floor policy establishes a minimum price for a market, and the policy is said to be binding ... (Read 112 times)

B

  • Hero Member
  • *****
  • Posts: 570
on: Jul 1, 2018
A price floor policy establishes a minimum price for a market, and the policy is said to be binding if the market equilibrium price is less than the floor price. What impact does a binding price floor have on the market outcome?
 
  A) Excess supply
  B) Excess demand
  C) Shortage
  D) No impact, and the market price and quantity equal their equilibrium values

Question 2

Suppose the downward sloping labor demand curve shifts rightward in a labor market with a single employer (monopsony). What happens to the equilibrium wage and level of employment in the market?
 
  A) Wage and level of employment increase.
  B) Wage increases and level of employment declines.
  C) Wage decreases and level of employment increases.
  D) Wage and level of employment decline.


blakeserpa

  • Sr. Member
  • ****
  • Posts: 338
Reply #1 on: Jul 1, 2018
Answer to Question 1

A

Answer to Question 2

A


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

The Romans did not use numerals to indicate fractions but instead used words to indicate parts of a whole.

Did you know?

It is important to read food labels and choose foods with low cholesterol and saturated trans fat. You should limit saturated fat to no higher than 6% of daily calories.

Did you know?

Looking at the sun may not only cause headache and distort your vision temporarily, but it can also cause permanent eye damage. Any exposure to sunlight adds to the cumulative effects of ultraviolet (UV) radiation on your eyes. UV exposure has been linked to eye disorders such as macular degeneration, solar retinitis, and corneal dystrophies.

Did you know?

The most dangerous mercury compound, dimethyl mercury, is so toxic that even a few microliters spilled on the skin can cause death. Mercury has been shown to accumulate in higher amounts in the following types of fish than other types: swordfish, shark, mackerel, tilefish, crab, and tuna.

Did you know?

Chronic marijuana use can damage the white blood cells and reduce the immune system's ability to respond to disease by as much as 40%. Without a strong immune system, the body is vulnerable to all kinds of degenerative and infectious diseases.

Graphical representations of ligand binding Graphical representations of ligand binding
Role of cooperativity of binding in regulation Role of cooperativity of binding in regulation
A simplified view of ligand binding and conformation energies in hemoglobin A simplified view of ligand binding and conformation energies in hemoglobin
Primary Type of Floor Framing Primary Type of Floor Framing
The retail price of a packaged CD is $60.00, which includes a tax of 4%. What is the actual ... The retail price of a packaged CD is $60.00, which includes a tax of 4%. What is the actual ...
Suppose the market supply curve is p = 5Q. If price increases from 10 to 15, the change in ... Suppose the market supply curve is p = 5Q. If price increases from 10 to 15, the change in ...
Video: Red alga life cycle Animation

For a complete list of videos, visit our video library