If a price ceiling is set above the equilibrium price in a market
A. rationing will be necessary.
B. the quantity supplied will equal the quantity demanded.
C. the quantity demanded will exceed the quantity supplied.
D. surpluses of the commodity will develop.
Answer: B
You might also like to view...
Changes in real planned investment spending have
A) an inverse relationship to changes in the interest rate. B) no identifiable relationship to changes in the interest rate. C) a direct relationship to changes in the level of household savings. D) a direct relationship to changes in interest rates.
When long-run average costs increase as output increases, there are
A) economies of scale. B) diseconomies of scale. C) constant returns to scale. D) constant marginal costs.
When investment bankers underwrite new stock, they
A) sell them on one of the stock exchanges. B) auction them off to the public. C) sell them to commercial banks who in turn find buyers. D) place them with ultimate investors and some intermediaries throughout the country.
Assume an economy is operating on its production possibilities curve, which shows the production of military and civilian goods. If the output of military goods is increased, the output of civilian goods:
A) will increase too. B) will not change. C) must decrease. D) may increase or decrease.