The harmful effect of a price ceiling to ________ is ________.
A. producers; the ceiling creates a surplus of the product
B. consumers; the ceiling creates a shortage of the product
C. producers; the selling price of the product is above the equilibrium price
D. consumers; the selling price of the product is above the equilibrium price
Answer: B
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Refer to the table above. Suppose that in normal years demand is represented by Case 2 and supply is represented by Case B. In a normal year the equilibrium quantity of wapanzo beans will be
A) 2 million pounds. B) 4 million pounds. C) 6 million pounds. D) 8 million pounds.
The degree of monopsony power that a firm enjoys is determined by
A) elasticity of market demand, elasticity of market supply, and number of buyers in the market. B) elasticity of market supply, number of buyers in the market, and how buyers interact. C) number of buyers in the market, how buyers interact, and number of sellers of the resource. D) how buyers interact, number of sellers of the resource, and elasticity of market demand.
Which of the following statements is incorrect with respect to the balance of payments?
a. It constitutes a record of transactions between residents within one country. b. It consists of a current account, a capital account, and an account to record omissions and errors. c. Transactions that result in a demand for domestic currency are always entered as a credit. d. It must balance in the aggregate, but separate accounts can show deficits or surpluses. e. It constitutes a record of a country's trade in goods and services and financial assets.
A demand curve shows the relationship between
a. price and quantity demanded b. the demand and supply schedules c. demand and supply equilibrium d. leakages and injections e. price and technology