The law that prohibits price from reaching its equilibrium point, by enforcing a maximum that is below equilibrium is called a _____ and results in a _____
a. price ceiling; shortage
b. price ceiling; surplus
c. price floor; shortage
d. price floor; surplus
A
You might also like to view...
The high-school dropout rate typically declines during a recession because
A) more money flows into the public sector as the flow declines in the private sector. B) teachers become more readily available during a recession. C) the opportunity cost of continuing in school falls in a recession. D) the demand for education rises in a recession. E) the legal school-leaving age is a function of the unemployment rate.
If households expect an increase in their future incomes, they will save
A) less and consume more today. B) more and consume less today. C) and consume more today. D) and consume less today.
Explain what change will bring a shift of a curve
What will be an ideal response?
Refer to Scenario 5.10. If Hillary invests 30 percent of her savings in the real estate project and the remainder in Treasury bills, the expected return on her portfolio is:
A) 4 percent. B) 11.8 percent. C) 17 percent. D) 22.2 percent. E) 30 percent.