Suppose market demand and supply are given by Qd = 100 - 2P and QS = 5 + 3P. If a price ceiling of $15 is imposed,
A. there will be neither a surplus or shortage.
B. there will be a surplus of 40 units.
C. there will be a shortage of 20 units.
D. there will be a shortage of 40 units.
Answer: C
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In 2008, Stark Finance Group suffered a huge loss in business. The best strategy to minimize the loss was to fire many employees. However, the CEO was against the idea and suggested reducing costs by decreasing the salary of each employee instead. He
believed this would benefit the employees, but it was observed that productive workers resigned because of the decrease in salary. Why do you think the CEO's idea did not work out? What would have been a more efficient course of action?
The science of economics is a finished jewel, perfect and unchanging
a. True b. False Indicate whether the statement is true or false
Which of the following statements about a hypothesis is? correct?
A. A hypothesis is another name for a model. B. A hypothesis will always incorporate a value judgment. C. A hypothesis is a statement that could in principle turn out to be incorrect. D. To be called a? hypothesis, a statement must first be shown to be correct.
If the Fed wants to raise interest rates, then it can use its open market operations to:
A. increase the money supply. B. decrease the money supply. C. increase money demand. D. decrease money demand.