Summarize the impacts of prices ceilings and price floors on the free market
What will be an ideal response?
A price ceiling is a maximum price, set by law, that sellers can charge for a good or service. A price floor is a minimum price, set by government, that must be paid for a good or service. Many farmers in the United States rely on price supports or other government programs.
You might also like to view...
Climate change is a geographical phenomenon; it refers to changes in the distribution of climatic events, such as temperature or the likelihood of tornadoes. Why is it important for economists to study climate change?
What will be an ideal response?
The double taxation problem occurs because households pay taxes on dividends and capital gains from stock and corporations pay taxes on corporate profits
Indicate whether the statement is true or false
Aggregate demand in an economy with no government or foreign trade is
A) consumer expenditure plus actual investment. B) consumer expenditure plus planned investment. C) consumer expenditure plus inventory investment. D) consumer expenditure plus fixed investment.
Suppose an economist found that total revenues increase for the bus system when fares were raised, the conclusion is that the price elasticity demand for subway services over the range of fare increase is inelastic
a. True b. False Indicate whether the statement is true or false