{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Problem Set 3

Problem Set 3 - Problem Set 3 A minimum wage will not cause...

This preview shows pages 1–7. Sign up to view the full content.

Problem Set 3 A minimum wage will not cause unemployment if it is

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
(a) belo w the equil ibriu m wag e rate. (b) strict ly enfo rced by gove rnm ent offici als. (c) set at a "fair" level , whic h is only \$1 abov e the equil ibriu m wag e rate. (d) Non e of the abov e.
A price floor is established for soybeans above the equilibrium price. At the newly established price,

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
(a) the quan tity supp lied will exce ed the quan tity dem ande d. (b) the soyb eans mad e avail able will be ratio ned by the price , so that ther e is neith er a surpl us nor a short age. (c) the quan tity dem ande d will equa
The price of oysters increases by 14%. As a result, the quantity demanded declines by 27%. The price elasticity of demand for oysters is (a) -14. (b) - 0.92 9. (c) - 1.92 9. (d) zero. The more substitutes there are for an item,

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
the high er the cost of the item will be. (b) the less elast ic the dem and will be. (c)
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 19

Problem Set 3 - Problem Set 3 A minimum wage will not cause...

This preview shows document pages 1 - 7. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online