Refer to the above figure. A price ceiling has been set at P1, and a black market has opened. The equilibrium black market quantity will be
A. Q2.
B. between Q1 and Q3.
C. above Q3.
D. below Q1.
Answer: B
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A single-price monopoly has marginal revenue and marginal cost equal to $19 at 15 units of output where the price on the demand curve is $38. What is the firm's total revenue?
A) $38 B) $285 C) $570 D) $19 E) There is not enough information given to answer the question.
The efficient output level of a public good occurs where the
A) greatest number of free riders occurs. B) marginal cost of producing the last unit is equal to the marginal benefit realized by consumers. C) marginal cost of production is minimized. D) total cost of production is affordable.
When the value of exports exceeds the value of imports then
A) changes in productivity will occur. B) international trade is in balance. C) the country is running a trade deficit. D) the country is running a trade surplus.
Velocity is commonly calculated by which of the following formulas?
A. (Value of money stock) / (Value of nominal GDP) B. (Value of transactions) / (Money stock) C. (Value of financial transactions) / (GDP) D. (Value of output) / (Value of input)