To say that a price ceiling is binding is to say that the price ceiling
a. results in a surplus.
b. is set above the equilibrium price.
c. causes quantity demanded to exceed quantity supplied.
d. All of the above are correct.
c
You might also like to view...
The objective of creating value is the same as
A) maximizing shareholder value. B) maximizing profit. C) maximizing added value. D) all of these choices.
The interest rate on primary credit extended by the Fed is:
A. equal to the IOER. B. the average of the prime interest rate charged by the ten largest banks in the nation. C. below the IOER. D. above the IOER.
The most important influence on a firm's demand for a factor of production is __________.
Fill in the blank(s) with the appropriate word(s).
In a simple, private economy, suppose that the MPC is 0.8 and investment rises by $20 million. At the new equilibrium, how much will saving have increased?
A. $8 million B. $16 million C. $20 million D. $80 million E. $100 million