After a price ceiling of $8 is placed on the market in the graph shown, the total number of units traded:
A. increases by 15 relative to equilibrium.
B. falls by 8 relative to equilibrium.
C. falls by 23 relative to equilibrium.
D. falls by 15 relative to equilibrium.
Answer: B
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What are the five variables that will shift the demand curve?
What will be an ideal response?
According to the expenditure approach, the largest component of GDP is:
a. government spending. b. proprietor's income. c. net interest. d. personal consumption expenditures. e. compensation of employees.
Which statement is the most accurate?
A. Most welfare mothers have had child after child to get larger welfare payments. B. Most welfare families have three or more children. C. There are many theories of poverty, but none provides more than a partial explanation. D. The conservatives and liberals are in basic agreement about the causes of poverty.
Use the figure to calculate the income elasticity of demand when income increases from $25,000 to $30,000:
A. -1.10 B. 0.1818 C. 1.10 D. 0.20 E. -0.10