If the government imposes a maximum price that is above the equilibrium price,
A. demand will be greater than supply.
B. the available supply will have to be rationed with a nonprice rationing mechanism.
C. this maximum price will have no economic impact.
D. quantity demanded will be less than quantity supplied.
Answer: C
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a. True b. False Indicate whether the statement is true or false
Which of the following would be included in a year's GDP?
a. Susan cleans the fuel injectors on her car. b. A private individual purchases 100 shares of IBM stock. c. A timber company purchases land in Oregon. d. A man buys an antique desk from his neighbor. e. A college professor purchases a new computer.
The following is budget information for a hypothetical economy. All data are in billions of dollars.
Refer to the above table. In which year is there a balanced budget?
A. Year 1
B. Year 2
C. Year 3
D. Year 4
The equilibrium increase in marginal costs for firms resulting from the imposition of a price floor will be larger the more inelastic the price elasticity of demand is.
Answer the following statement true (T) or false (F)