Price ceilings lead to market surpluses
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
In the figure above, assume that output is $10.5 trillion, while potential output is $12 trillion
If autonomous monetary policy (alone) is used to bring output to $12 trillion, then the figure implies that the real interest rate will be ________ percent, and the inflation rate will be one percent. A) 1.5 B) zero C) one D) 0.5 E) 2.5
What can explain the fact that DVD players decreased in price during the 1990s even as more DVD players were being sold?
A) The demand for DVDs was declining. B) The supply of DVD players was decreasing. C) The supply of DVD players was increasing more than the demand for DVD players. D) The demand for DVD players was increasing more than the supply of DVD players.
Rising prices of resources leads to inefficient resource use by industry.
Answer the following statement true (T) or false (F)
If the price elasticity of demand is equal to zero and the price was to rise, the quantity demanded would:
A. decrease slightly. B. fall to zero. C. not change. D. increase.