If the government regulates the price a monopoly can charge, and the price ceiling is set below what the competitive market price would be, then
A) a shortage will exist.
B) a surplus will exist.
C) producer surplus is maximized.
D) consumer surplus is maximized.
A
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Which of the following is a microeconomic topic?
i) Gas prices increase after a hurricane hits the gulf coast. ii) Xavier starts a new business designing web pages. iii) Abby decides to practice an extra hour of soccer instead of studying. A. i, ii and iii
In a figure, the consumer surplus is equal to the area ________ the ________ curve and ________ the price
A) above; demand; above B) below; supply; below C) below; demand; below D) below; demand; above E) above; supply; below
Describe the main factors economists believe cause inequality of income
What will be an ideal response?
To earn profits, the market maker must
a. bid high, ask low b. bid low, ask high c. equalize the bid and ask price d. not create the market