Figure 4-18
Refer to . If the government imposes a price ceiling of $2.00 in this market, the result is a
a.
surplus of 30 units of the good.
b.
shortage of 20 units of the good.
c.
shortage of 30 units of the good.
d.
shortage of 50 units of the good.
d
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The production of steel in a factory generates a negative externality. A per-unit tax on the factory that equals ________ of steel production will internalize the externality entirely
A) the marginal private cost B) the marginal social cost C) the marginal external cost D) the marginal external benefit
If the money supply of a country doubles, a likely result is ________.
enough demand to give everyone a job inflation a trade surplus a doubling of real GDP
Suppose that the elasticity of demand for a product is 2.0. What will happen to total revenue as a firm increases the price?
A. Total revenue will increase. B. Total revenue will decrease. C. Total revenue will stay the same. D. It cannot be determined from the information provided.
In New York City, apartment rent can be adjusted only when a tenant leaves. This leads
A. landlords to encourage tenants to stay in their apartments. B. businesses to build new rental units. C. tenants to stay in apartments longer than they would otherwise. D. people to change apartments often.