The most immediate and direct effect of minimum price laws designed to prevent predatory pricing is to
A) guarantee profits to all sellers, large or small.
B) guarantee profits to large sellers exclusively.
C) guarantee profits to small sellers exclusively.
D) preserve competition without guaranteeing profits.
E) prevent competition without guaranteeing profits.
Question 2
The quantity effect of a price reduction causes:
A) a decrease in revenue because of a lower price.
B) an increase in revenue because of increased sales.
C) an increase in labor demand due to increased sales of the product.
D) a decrease in labor demand because of a lower price of the final product.
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