An effective price floor:
A) must be set above the equilibrium price,and will likely cause a shortage.
B) must be set below the equilibrium price,and will likely cause a shortage.
C) must be set above the equilibrium price,and will likely cause a surplus.
D) must be set below the equilibrium price,and will likely cause a surplus.
Correct Answer:
Verified
Q33: Taxes:
A)are the main way that governments raise
Q34: An effective price floor:
A)will cause quantity demanded
Q35: Any tax on a good can:
A)discourage consumption
Q36: An effective price ceiling:
A)must be set above
Q37: An unintended consequence of price ceilings is:
A)non-price
Q39: A prominent argument against the use of
Q40: An unintended consequence of price floors is:
A)non-price
Q41: A tax on sellers:
A)causes equilibrium price to
Q43: When a tax is imposed on a
Q134: If the producers bear a smaller tax
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