An effective price ceiling tends to

A) increase quantity supplied.
B) decrease quantity demanded.
C) leave quantity supplied and demanded unchanged.
D) do none of the above.


D

Economics

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Refer to the scenario above. Which of the following will happen if she sells it for $200, and the total cost incurred by her in making the dress was $150?

A) GDP will increase by $50. B) GDP will increase by $180. C) Trade surplus will increase by $200. D) GDP will remain unchanged. Sarah takes care of her son instead of sending him to a day care which charges $12,000 annually.

Economics

Refer to Figure 4-1. If the market price is $2.50, what is the consumer surplus on the first ice cream cone?

A) $0.50 B) $1.00 C) $3.50 D) $9.00

Economics

When the economy is using all of its factors of production, the aggregate supply curve is vertical

Indicate whether the statement is true or false

Economics

GDP accounting ignores

A) all non-market forms of production. B) illegal (black market) production. C) economic value added. D) all of the above.

Economics