Refer to the graph shown. If the government imposed a price ceiling of $4, the quantity purchased by consumers in this market would:
A. increase from 4 to 6.
B. decline from 6 to 4.
C. increase from 2 to 4.
D. decline from 4 to 2.
Answer: D
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Refer to the above figure. Medicare subsidies have increased the price of medical services to Ps. The quantity demanded of medical services is
A) QM. B) Q0. C) Qd. D) undetermined without more information.
Public utility regulation
What will be an ideal response?
New classical economists contend that both the short-run and long-run aggregate supply curves are vertical
a. True b. False Indicate whether the statement is true or false
Exhibit 4-5 Supply and demand curves for computers
Which of the following changes could cause the computer market to change as shown in Exhibit 4-5?
A. Lower costs for computer chips and motherboards. B. The failure of several computer manufacturers. C. Higher prices for computer software. D. More features and greater ease of use.