Author Question: When a government imposes a price floor on a good that is above the market equilibrium price A) a ... (Read 65 times)

schs14 · **on:** Jul 1, 2018

When a government imposes a price floor on a good that is above the market equilibrium price

A) a surplus will develop.
B) a shortage will develop.
C) producers will increase their sales price.
D) consumers will increase their demand for the good.

Question 2

In deciding whether to operate in the short run, the firm must consider the relationship between price and

A) total cost.
B) average variable cost.
C) total fixed cost.
D) the number of buyers.