Exhibit 4-10 Supply and demand data for apricots
Bushels demandedper month
Price perbushel
Bushels suppliedper month
50
$5
80
55
4
75
60
3
70
65
2
65
70
1
55
Which of the following would occur if the government set a price ceiling of $1 in the market shown in Exhibit 4-10?
A. There would be a shortage of apricots.
B. Buyers would not want to purchase all of the apricots that are supplied.
C. There would be a surplus of apricots.
D. Farmers would reduce the number of acres allocated to the growing of apricots.
Answer: A
You might also like to view...
If an unregulated electric company is a monopolist, faces demand of Q = 100 - 50P, and has a constant marginal cost of 1, the profit-maximizing price is
a. 0 b. 1 c. 1.5 d. 2
If wages drop below the market equilibrium level in a competitive labor market:
A. firms will demand more labor than workers are willing to supply. B. there won't be enough workers willing to work at that wage. C. firms will have to offer higher wages to attract the workers they need. D. All of these statements are true.
Politicians often instruct households to spend in order to help the economy. This advice overlooks the fact that
a. increases in consumption will make it easier for households to deal with unanticipated future expenses.
b. increases in consumption will provide more loanable funds for investment.
c. you cannot have a strong economy if all or most households are spending just about everything they earn.
d. consumer spending is less than two-thirds of GDP.
Researchers demonstrate conclusively that drinking 4-6 ounces of ginger ale each day increases life expectancy by 3 years. What happens in the market for ginger ale?
A) The equilibrium price falls, and the equilibrium quantity rises. B) The equilibrium price rises, and the equilibrium quantity falls. C) The equilibrium price and quantity rise. D) The equilibrium price and quantity fall.