A price floor set below market equilibrium will A. cause a shortage in the market. B. cause a surplus in the market. C. have no impact on the market. D. cause there to be a greater quantity supplied than at market equilibrium 2. Assume that resource X is necessary in the production of good Y. If the price of resource X increases, then A. the supply of Y will increase. B. the supply of Y will decrease. C. the demand of Y will increase. D. the demand of Y will decrease
A price floor set below market equilibrium will A. cause a shortage in the market. B. cause a surplus in the market. C. have no impact on the market. D. cause there to be a greater quantity supplied than at market equilibrium 2. Assume that resource X is necessary in the production of good Y. If the price of resource X increases, then A. the supply of Y will increase. B. the supply of Y will decrease. C. the demand of Y will increase. D. the demand of Y will decrease
Chapter5: Markets In Motion And Price Controls
Section: Chapter Questions
Problem 1P
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1. A
A. cause a shortage in the market.
B. cause a surplus in the market.
C. have no impact on the market.
D. cause there to be a greater quantity supplied than at market equilibrium
2. Assume that resource X is necessary in the production of good Y. If the price of resource X increases, then
A. the supply of Y will increase.
B. the supply of Y will decrease.
C. the demand of Y will increase.
D. the demand of Y will decrease.
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