Suppose market demand and supply are given by Qd = 100 - 2P and QS = 5 + 3P. If a price ceiling of $15 is imposed, what will be the resulting full economic price?
A. $25.
B. $6.
C. $21.
D. $19.
Answer: A
You might also like to view...
What is the slope of the line in the graph?
A) +1/2 B) -1/2 C) +2 D) -2 E) -3/4
According to classical economists, government intervention is:
a. necessary to maintain a stable price level in the long run. b. necessary to maintain a stable price level in the short run. c. necessary to maintain full employment in the long run. d. necessary to maintain full employment in the short run. e. not necessary to maintain full employment.
How will an increase in the price of coffee affect the market for cocoa, a substitute good?
a. The supply of cocoa will increase, leading to a reduction in the price of cocoa. b. The supply of cocoa will decrease, leading to an increase in the price of cocoa. c. The demand for cocoa will increase, leading to an increase in the price of cocoa. d. The demand for cocoa will decrease, leading to a reduction in the price of cocoa.
Assume that the stock of money is determined by the Federal Reserve and does not change when the interest rate changes. This situation means that the
A. supply of money curve is vertical. B. supply of money curve is horizontal. C. supply of money curve is inversely related to the interest rate. D. demand for money curve is directly related to the interest rate.