A price ceiling on a good will usually
A. shift both the demand and supply curves to the left.
B. shift the demand curve to the left and the supply curve to the right.
C. shift neither the demand curve nor the supply curve.
D. shift both the demand and supply curves to the right.
Answer: C
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Identify each of the following as (i) part of an expansionary fiscal policy, (ii) part of a contractionary fiscal policy, or (iii) not part of fiscal policy
a. The personal income tax rate is lowered. b. Congress cuts spending on defense. c. College students are allowed to deduct tuition costs from their federal income taxes. d. The corporate income tax rate is lowered. e. The state of Nevada builds a new tollway in an attempt to expand employment and ease traffic in Las Vegas.
The fact that many people drive faster than the posted speed limit suggests that
A) not all price floors are enforceable. B) not all price and quantity regulations are enforceable. C) individual drivers act irrationally. D) government regulation is utterly useless.
The demand curve for the perfectly competitive industry normally slopes downward, unlike the perfect competitive firm. Why?
What will be an ideal response?
One goal a firm tries to achieve when it advertises a product is to
A) make the demand curve for the product more elastic. B) make the demand curve for the product unitary elastic. C) make the demand curve for the product more inelastic. D) shift the demand curve for the product to the left.