1. Which of the following would not occur in the short run if a binding price floor were raised in perfectly competitive market?
A. an increase in total surplus
B. a decrease in consumer surplus
C. a decrease in the quantity actually traded
D. an increase in gap between quantity demanded and quantity supplied
2. What is price discrimination?
A. selling products that are similar to, but not exactly the same as a competitor's products
B. selling the same product to different consumers at different prices
C. selling a good at a price above marginal cost
D. selling a good at a price above average variable cost
3. Assume that the wholesale skim milk market is perfectly competitive. Suppose demand is described by P=5.10-0.80Q and supply is described by P=1.90+0.20Q. If there are no price controls, what would be the equilibrium quantity? (Answers must be within 0.10 of the actual value to be counted as correct.)