Which of the following is an example of a price ceiling and a price floor? _1. A group of oil-producing countries form a cartel and sell oil at above equilibrium price. _2. A consumer advocate group agrees not to patronize a service unless it is sold at a lower price. 3. A young woman realizes she is buying cosmetic products at above equilibrium price. _4. Nobody is allowed to charge more than P65 per bag of corn at the farm gate. Tell whether the following are fixed or variable inputs: _1. Factory space _2. Electric consumption

Which of the following is an example of a price ceiling and a price floor? _1. A group of oil-producing countries form a cartel and sell oil at above equilibrium price. _2. A consumer advocate group agrees not to patronize a service unless it is sold at a lower price. 3. A young woman realizes she is buying cosmetic products at above equilibrium price. _4. Nobody is allowed to charge more than P65 per bag of corn at the farm gate. Tell whether the following are fixed or variable inputs: _1. Factory space _2. Electric consumption

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter4: Markets In Action

Section: Chapter Questions

Problem 14SQ

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