The imposition of a binding price floor on a market causes quantity demanded to be
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- Which of the following would increase quantity supplied, increase quantity demanded, and decrease the price that consumers pay? ( ) A: the imposition of a binding price floor . B: the removal of a binding price floor. C: the passage of a tax levied on producers. D: the repeal of a tax levied on producers .
- When a binding price floor is imposed on a market to benefit sellers,
- Suppose that the current price in a market for Pizza is $9. At that price, the quantity demanded is 519 and the quantity supplied is 400. In this market, we would expect that:
- If the market price of a good is below the equilibrium price ______ A: quantity demanded Hill exceed quantity supplied, resulting in a shortage. B: quantity demanded Hill exceed quantity supplied, resulting in a surplus. C: quantity supplied will exceed quantity demanded, resulting in a shortage. D: quantity supplied will exceed quantity demanded, resulting in a surplus. E: the supply curve will shift to the left and the demand curve will shift to the right.
- When a monopolistically competitive firm raises its price, A: quantity demanded falls to zero. B: quantity demanded declines but not to zero. C: the market supply curve shifts outward. D: quantity demanded remains constant.