Assume no price ceiling exists in a market. Then a price ceiling is established below the market equilibrium. What would result?
a. Surplus
b. The exchange price
c. Shortage
d. Equilibrium
c
You might also like to view...
Which of the following is NOT likely to occur when a bank fails?
A) Everyone that deposits money in the bank loses all or a portion of their money, unless the country has a functioning deposit insurance system. B) The loss of savings (or the feared loss of savings) causes households to cut back on consumption, which spreads the recessionary effect wider through the country. C) Unaffected banks may stop making loans as they take a cautious approach, slowing or stopping new investment. D) Layoffs occur and the economy falls deeper into a downward spiraling inflation. E) Other banks make too many loans to make up for the loans not made by the failed bank, kicking off a cycle of stimulation and inflation.
When considering setting the transfer price at the market price of a product similar to the intermediate good that is already available on the market
a. It is appropriate to ignore that the market price includes a margin above marginal cost b. It is OK if the product on the market includes costly features your downstream division does not use c. It is OK if the product on the market is inexpensive because its quality is lower than you use d. If it is similar enough, it calls into question whether there are gains from producing it in-house
When the consumption of a good generates an external benefit:
a. the private benefit consumers receive from the good will be higher than the true social benefit. b. too much of the good will tend to be produced from the viewpoint of economic efficiency. c. the community generally suffers an exactly offsetting external cost from the production of the good. d. the market demand curve will understate the total benefits derived from consumption of the good, and as a result, too little of it will be produced and consumed.
When the price of a good is lower than the equilibrium price, a. a surplus will exist
b. buyers desire to purchase more than is produced. c. sellers desire to produce and sell more than buyers wish to purchase. d. quantity supplied exceeds quantity demanded.