A price ceiling established below the market clearing price will usually cause
A. no change in the market clearing price.
B. an excess supply.
C. nonprice rationing.
D. a decrease in the market clearing price.
Answer: C
You might also like to view...
Which of the following statements best describes the comparative advantage of the corresponding country regarding the iPhone?
a. The United States has a comparative advantage in designing and marketing products. b. China has a comparative advantage in designing and marketing products. c. Korea has a comparative advantage in producing components. d. China has a comparative advantage in producing components.
Supplies of drinking water depend on
a. ground water b. surface water c. water resources protected by the Clean Water Act d. all of the above e. none of the above
A job in sales-such as a sales representative for an agricultural chemical company-usually represents
A. many tasks and little sales authority. B. many tasks and a lot of sales authority. C. few tasks and very little sales authority. D. few tasks and a lot of sales authority.
Give an example that shows how inefficiency relates to product differentiation for a monopolistically competitive industry.
What will be an ideal response?