Figure 4-17



Refer to . If the government imposes a price ceiling in this market at a price of $5.00, the result would be a

a.

shortage of 20 units.

b.

shortage of 10 units.

c.

surplus of 20 units.

d.

surplus of 10 units.


a

Economics

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Suppose a firm uses workers and office space to produce output. The firm is locked into a year-long lease on its office space, but it can easily vary the number of employee-hours it uses each day. The table below describes the relationship between the number of employee-hours the firm uses each day and the firm's daily output. Each unit of output sells for $2, the hourly wage rate is $14, and the rent on the office space is $50 per day.Employee-HoursPer DayOutputPer Day0014048091201516023200When the firm uses 9 employee-hours, its total labor cost each day is:

A. $30 B. $126 C. $56 D. $84

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Our "dual" banking system refers to

A) commercial banks and thrifts. B) federal and state chartering and supervision of commercial banks. C) stockholder-ownership and depositor-ownership of depository institutions. D) banks that are members and non-members of the Fed.

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Which of the following is NOT an example of transactions costs?

A) high interest rates B) lawyers' fees C) brokerage commissions D) minimum investment requirements

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If good B is a complement to good A, then a decrease in the price of B

a. increases the quantity demanded of A b. decreases the demand for A c. increases the demand for A d. decreases the quantity demanded of A e. will cause the demand for B to increase

Economics