A price ceiling is
A. above the initial equilibrium price.
B. the maximum legal price that can be charged in a market.
C. the minimum legal price that can be charged in a market.
D. equal to the initial equilibrium price.
Answer: B
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Which of the following statements is normative?
A. Large budget deficits should be avoided. B. When the Federal Reserve increases the money supply, interest rates decrease. C. High taxes tend to decrease saving. D. A large budget surplus is likely to lower interest rates.
How many patents has the U.S. Patent and Trademark Office issued annually in recent years?
a. 100,000 b. 150,000 c. 500,000 d. 1,000,000
If the quantity of money demanded is less than the quantity of money supplied, then the interest rate will:
a) change in an uncertain direction b) rise c) fall d) remain constant
Suppose there is no inflation, and the current interest rate is 4% per year. Erin plans to open a savings account and deposit $100 annually for the next 5 years. She plans to leave this money untouched for 10 more years. At the end of the period, the balance of her savings account will be
A) 2500(1.045 - 1). B) 2000(1.0415-1). C) 2000(1.045 - 1)(1.04)10. D) 2500(1.045 - 1)(1.04)10.