When a binding price ceiling is imposed on a market,
a. price no longer serves as a rationing device
b. the quantity supplied at the price ceiling exceeds the quantity that would have been supplied without the price ceiling.
c. all potential buyers benefit.
d. All of the above are correct.
a
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Electric car manufacturers want to sell more electric cars at a higher price. Which of the following events would have this effect?
A) an increase in the price of gasoline. B) technological advancement in the production of electric car batteries. C) an increase in the number of manufacturers of electric cars. D) a decrease in the price of lithium, which is used in the electric car batteries.
Under a transferable emissions permit system,
A) the firms with the lowest marginal abatement cost curves will reduce emissions most. B) the firms with the highest marginal abatement cost curves will reduce emissions most. C) the firms with the lowest marginal social cost curves will reduce emissions most. D) the firms with the highest marginal social cost curves will reduce emissions most. E) all firms will reduce emissions equally.
If Slick Shades has a constant marginal cost of production equal to $80 and the distributors have a constant marginal cost of distribution equal to $30, what is the profit-maximizing number of sunglasses (in hundreds) for Slick Shades to produce?
The figure above shows the wholesale demand and marginal revenue curves for Slick Shades Sunglasses, a sunglasses firm with market power. Slick Shades Sunglasses has a constant marginal cost of production and it sells to perfectly competitive independent retail distributors that have a constant marginal cost of distribution.
A) 40
B) 80
C) 55
D) 60
Which of the following would cause prices and real GDP to rise in the short run?
a. an increase in the expected price level b. an increase in the money supply c. a decrease in the capital stock d. an increase in taxes.