This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: B. It depends on the elasticity of demand. C. It depends on the elasticity of supply. D. It depends on both the elasticity of demand and the elasticity of supply. E. None of the above. Quiz Question 3: When the government sets a price floor, in the absence of any non-price rationing mechanism, what is the effect in the market? A. A price floor causes a shortage. B. A price floor causes a surplus. C. It depends upon the size of the deadweight loss. Quiz...
View Full Document
This note was uploaded on 02/07/2011 for the course ECON 100A taught by Professor Woroch during the Fall '08 term at University of California, Berkeley.
- Fall '08