Suppose at the current price, the demand for copper is estimated at -3.14. What happens to sales revenue if the government imposes a price ceiling below the free market equilibrium price in the copper market?
A) Sales revenue falls.
B) Sales revenue remains unchanged because copper is a necessity for most industries.
C) Sales revenue rises.
D) It cannot be determined without information on prices.
C
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The figure above shows the marginal social cost curve of generating electricity and the marginal private cost curve. The marginal external cost when 100 billion kilowatt hours are produced is
A) 0¢ per kilowatt. B) 5¢ per kilowatt. C) 10¢ per kilowatt. D) 15¢ per kilowatt. E) 20¢ per kilowatt.
Which of the following types of information most likely allows the exploitation of a profit opportunity?
A) financial analysts' published recommendations B) technical analysis C) hot tips from a stockbroker D) insider information
Which of the following will lead to a higher interest rate on a loan?
A) lower inflation B) lower opportunity cost C) increased perceived risk of default D) reduced likelihood of borrower not paying the loan
Refer to the graph below. The long-run average change in real GDP is shown by
a. the Growth trend line.
b. the contraction.
c. the expansion.
d. the peak.