The imposition of a binding price ceiling on a market often results in:
a. an increase in investment in the industry
b. a surplus.
c. a shortage.
d. a decrease in discrimination on the part of sellers.
c
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A commodity that buyers and sellers both have will increase the efficiency of the market
Indicate whether the statement is true or false.
A firm can sell 14 units at $18, but to sell 15 units, the firm must cut the price to $17. The marginal revenue derived from selling the 15th unit is
A. -$18. B. 0. C. $3. D. $17.
Refer to the information provided in Figure 25.2 below to answer the question(s) that follow.
Figure 25.2Refer to Figure 25.2. Suppose the money demand is currently at Point D. A movement to point C could be caused by
A. an increase in the price level. B. a decrease in nominal income. C. a decrease in the interest rate. D. an increase in the interest rate.
Which of the following, if true, would most effectively undermine the argument that raising cigarette taxes reduces the number of people who smoke cigarettes?
A. The demand for cigarettes is relatively elastic. B. The demand for cigarettes is relatively inelastic. C. The supply for cigarettes is relatively elastic. D. The supply for cigarettes is relatively inelastic.