One likely result of a price ceiling is that:
a. a surplus of product would result.
b. the price charged in the market would be above the equilibrium price.
c. the price charged in the market would be the equilibrium price.
d. the available product must be rationed.
e. the market supply curve will shift to the right.
d
You might also like to view...
Which of the following is an example of a normative statement?
a. If the money supply falls, interest rates will rise. b. Teenage unemployment would be lower if there were no minimum wage. c. The quantity of shirts sold increases as the price of shirts decreases. d. The federal government's total spending should be reduced. e. If interest rates go up, then construction activity will fall.
A firm's incentive to compare marginal revenue and marginal cost is an application of the principle that rational people think at the margin
a. True b. False Indicate whether the statement is true or false
Another way to think of the marginal seller is the seller who
a. will accept the lowest price of any seller in the market. b. requires the highest price of any potential seller in the market. c. would leave the market first if the price were any lower. d. would leave the market last if the price falls.
The law of comparative advantage indicates that if a group of individuals wants to maximize their joint output, then each good should be supplied by
a. the person with the lowest wage rate. b. the low opportunity cost producer. c. the person with the most advanced technical knowledge. d. the person that can accomplish the task most rapidly.