If the government imposes a price ceiling that is lower than the market clearing price, then
A. consumer surplus will decrease while producer surplus will increase.
B. both consumer surplus and producer surplus will stay the same.
C. both consumer surplus and producer surplus will decrease.
D. both consumer surplus and producer surplus will increase.
Answer: C
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In the short run, if the economy is at full employment, then the quantity of real GDP
A) is equal to potential GDP, and the unemployment rate is equal to the natural unemployment rate. B) does not necessarily equal potential GDP, but the unemployment rate is equal to the natural unemployment rate. C) is equal to potential GDP, but the unemployment rate does not necessarily equal the natural unemployment rate. D) is equal to potential GDP, but the unemployment rate is less than the natural unemployment rate. E) exceeds potential GDP, and the unemployment rate is less than the natural unemployment rate.
Equality means distributing society's resources in the most efficient manner
a. True b. False Indicate whether the statement is true or false
Suppose that the U.S. personal income tax was eliminated and replaced with a fixed tax that raised the exact same amount of revenue. The multiplier would be
A. larger. B. unchanged. C. smaller. D. incalculable.
A factor increasing the popularity of monetarism in the late 1970s was the
A. ease with which the Fed controlled the money supply. B. excellent performance of the economy in the 1970s. C. fear of budget deficits and growing federal debt. D. predictable behavior of velocity until about 1980.