According to the graph above, which of the following will occur if a legal price ceiling is imposed at price X?
What will be an ideal response?
Shortages will occur.
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How does the political system of a country affect its economic performance? a. The political state dictates what will be produced and how it will be produced for many LDC countries and the success of their economies depends upon the success ofthe political leaders in mobilizing the resources of the economies
b. Political revolution is creative in the same way that technological change is creative in the economic system, and these creativities spark the economy's economicperformance. c. The right to vote is equivalent to consumer sovereignty, which is the right to choose one's consumption and employment. d. Political honesty, such as one law for all, helps the poor and they are the backbone of an economy's production. e. Political stability is a prerequisite for long-term investment.
Monetary policy is determined by a committee whose voting members include all the presidents of the regional Federal Reserve Banks
a. True b. False Indicate whether the statement is true or false
When public choice economists look at labor markets, they:
A. see individuals lobbying politicians to protect their monopolies. B. generally see supply and demand forces leading to equilibrium. C. capture the same aspects of reality that are captured by other economists. D. focus on the tensions among social classes and generally see exploitation of workers by capitalists.
The primary goal of central bankers is to mitigate the consequences of bubbles, not to prevent bubbles.
Answer the following statement true (T) or false (F)