Author Question: A government-imposed price floor above the market price of milk would increase consumers' ... (Read 26 times)

evelyn o bentley · **on:** Jul 1, 2018

A government-imposed price floor above the market price of milk would increase consumers' expenditures on milk only if
a. demand is elastic
b. supply is inelastic
c. demand falls
d. demand is inelastic
e. supply is unit elastic

Question 2

Suppose consumers spent 42 million on Christmas trees last year when the average tree cost 30 and this year spent 42 million when the average tree costs 25 . Assuming nothing else changed, this data suggests that
a. consumers bought the same number of Christmas trees this year as last year
b. the price of Christmas trees stayed the same
c. total revenues to tree producers rose this year
d. the demand for trees is unit elastic
e. the demand for trees is inelastic