A black market could arise as a result of:
A. The imposition of a legal price floor below the equilibrium price
B. The imposition of a legal price ceiling above the equilibrium price
C. The imposition of a legal price floor at the equilibrium price
D. The imposition of a legal price ceiling below the equilibrium price
D. The imposition of a legal price ceiling below the equilibrium price
You might also like to view...
Health insurance companies impose deductibles on policies and co-payments on claims to reduce the problem of adverse selection
Indicate whether the statement is true or false
Eldin is a house painter. He can paint three houses per week. He is considering hiring his friend Murphy. Murphy can paint five houses per week. What is the maximum total output possible if Eldin hires Murphy?
a. 2 houses b. 3 houses c. 5 houses d. 8 houses
Refer to the diagram below, which shows three supply curves for corn. Which of the following would cause the supply of corn to shift from S1 to S3?
A. A decrease in the cost of equipment used in corn farming
B. An increase in the price of soybeans
C. A decrease in the price of corn
D. An increase in the number of acres of farmland allocated to corn
According to Figure 7.1, which of the following statements was definitely true about Country B?
A. The average price in general increased over the time period 1970 to 1995. B. The price level was about the same in 1970 and 1995. C. Relative prices were changing. D. Real incomes were increasing.