The government places a price control on cell phones, saying that companies cannot charge more than $300 per phone. Considering this, what would be the most likely result?
a. an equilibrium of cell phones
b. a recall of cell phones
c. a surplus of cell phones
d. a shortage of cell phones
d. a shortage of cell phones
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Congress passed the ________ in 1996, the purpose of which was to phase out price floors and return to a free market in agriculture
A) Agribusiness Act B) Smoot-Hawley Act C) Freedom to Farm Act D) Rice and Beans Act
The longer the time frame involved, the more likely it is that the demand will be relatively
A) elastic. B) inelastic. C) steep. D) flat.
Which of the following does not characterize a competitive market?
A.) Many firms B.) Advertising by individual firms C.) Low barriers to entry D.) Zero economic profit in the long run
Refer to Figure 34.4. The implied marginal tax rate in this example is
A. Between 0 and 100 percent. B. 0 percent. C. Greater than 100 percent. D. 100 percent.