Question: Which of the following explains the effect on equilibrium price and quantity in the corn market?

Answer: The price of corn will fall, but the effect on equilibrium quantity cannot be determined without more information.

Question: Opponents of minimum wage legislation argue that higher minimum wages serve to

Answer: increase unemployment, particularly among unskilled minority teenagers.

Question: The minimum wage is an example of

Answer: a price floor.

Question: What changes in the demand for and supply of tablet devices could have generated these outcomes?

Answer: Demand increases and supply increases.

Question: The primary losers from minimum wages are

Answer: teenage and unskilled workers.

Question: Which of the following would best describe the market reaction of this event?

Answer: The demand for aluminum decreases, which creates a surplus of aluminum, causing the price of aluminum to decrease.

Question: Which of the following best describes the response of the quantity of labor employed at restaurants?

Answer: Fewer workers will be employed since the wage increases will induce managers to seek to substitute other inputs for the now relatively more expensive labor.

Question: A price ceiling is

Answer: a government-imposed maximum price that may be charged for a good or service, which can lead to shortages.

Question: What is the economic effect of price floors?

Answer: Surpluses