Refer to the above figure. A price ceiling has been set at P1, and a black market has opened. The equilibrium black market price will be
A. below P1.
B. between P1 and P3.
C. P2.
D. above P3.
Answer: B
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Which of the following is likely to cause an increase in the wage rate and a fall in the employment level in a country?
A) A right shift in the demand curve for labor, without any change in the supply curve for labor B) A left shift in the demand curve for labor, without any change in the supply curve for labor C) A right shift in the supply curve for labor, without any change in the demand curve for labor D) A left shift in the supply curve for labor, without any change in the demand curve for labor
When y changes, x stays the same. The line depicting this relationship would be
A) vertical. B) horizontal. C) linear with a negative slope. D) linear with a positive slope.
A tariff ______ the domestic price of a good and ______ the quantity sold.
A. increases; increases B. decreases; decreases C. increases; decreases D. decreases; increases
Americans generally spend over _______ of their income on consumption.
A. one-third B. one-half C. two-thirds D. nine-tenths