When the government imposes a price ceiling on a good whose price is too high,
A. surpluses are created.
B. supply will increase to meet the demand.
C. chronic excess demand occurs.
D. quantity demanded of the good will fall.
Answer: C
You might also like to view...
Briefly describe the most important differences between the market for health care and the market for other goods and services
What will be an ideal response?
A decrease in the productivity of a factor of production will
A. cause a firm to move down the marginal revenue product curve. B. cause a firm to move up the marginal revenue product curve. C. shift its marginal revenue product curve to the right. D. shift its marginal revenue product curve to the left.
Refer to the diagram. A shortage of 160 units would be encountered if price was:
A. $1.10, that is, $1.60 minus $.50.
B. $1.60.
C. $1.00.
D. $0.50.
The personal saving rate is percentage of national income that is saved.
Answer the following statement true (T) or false (F)