Answered: 1. A binding price floor in a market is…

Principles of Macroeconomics (MindTap Course List)

7th Edition

ISBN:9781285165912

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter6: Supply, Demand And Government Policies

Section: Chapter Questions

Problem 2QCMC

See similar textbooks

Related questions

Question

1. A binding price floor in a market is removed. Which of the following is likely to occur as a result?

SELECT THE CORRECT ANSWER

a. The market price will rise.

b. The demand for the item will fall.

c. The market price will fall.

d. The supply of the item will rise.

2. In 2016, Amazon began charging a 5.75% sales tax on products it sells in the District of Columbia. Holding all else constant, the effect of this tax would be to _____ in the District of Columbia.

Select the correct answer

a. decrease Amazon sales

b. decrease prices for local businesses

c. decrease the number of consumers

d. increase Amazon sales

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions