In a Market with a Price Support Set Above the Equilibrium

question 77

Multiple Choice

In a market with a price support set above the equilibrium price,

• A) consumers gain.
• B) taxes on consumers decrease.
• C) marginal benefit exceeds marginal cost.
• D) the market is efficient.
• E) farmers gain.

Understand the concept of nominal variables and their representation by indicator (dummy) variables.

Recognize when to use indicator variables in multiple regression models.

Identify the appropriate number of indicator variables for nominal variables with various categories.

Interpret the role and effect of indicator variables in regression analysis and model prediction.

---

Definitions:

Asperger's Disorder

A developmental disorder affecting ability to effectively socialize and communicate, now considered part of the autism spectrum disorder.

Asperger's Disorder

A disorder on the autism spectrum characterized by difficulties in social interaction and nonverbal communication, along with restricted and repetitive patterns of behavior and interests.

Personal Distress

A negative emotional response to seeing someone else in distress, which can motivate helping behaviors aimed at reducing one's own discomfort rather than the other's distress.