One method of addressing an excess demand in a market that is created by a price ceiling is to
a. decrease price
b. ration the good
c. create a price floor
d. decrease supply
e. have the government buy up the surplus
B
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The Clayton Act of 1936 outlawed price discrimination that reduced competition
Indicate whether the statement is true or false
Gwen has decided to start her own photography studio. To purchase the necessary equipment, Gwen withdrew $2,000 from her savings account, which was earning 3% interest, and borrowed an additional $4,000 from the bank at an interest rate of 7%. What is Gwen's annual opportunity cost of the financial capital that has been invested in the business?
a. $60 b. $280 c. $340 d. $660
What are the key ingredients of Taiwan's successful entry into world markets? What lessons can other developing countries draw from Taiwan's experience with global markets?
What will be an ideal response?
An excess supply of rice in a competitive market would indicate that
a. the problem of scarcity has been solved in that market b. buyers want to purchase more rice at the current price than the sellers want to sell c. the market will not be able to approach equilibrium d. the entire supply curve must shift to the left in order to attain equilibrium e. the current price exceeds the equilibrium price