If a binding price ceiling were placed in the market in the graph shown:
A. the supply curve would have to shift.
B. quantity supplied would exceed quantity demanded.
C. quantity demanded would exceed quantity supplied.
D. the demand curve would have to shift.
Answer: C
You might also like to view...
The break-even quantity is
a. 10000 b. 5,555 c. 12,500 d. 5,000
Productive activity in the underground economy:
a. results in an overstatement of actual income and production in the national accounting system. b. consists of unrecorded cash transactions. c. is estimated and included in the national income accounting system. d. poses no problem for the measurement of gross domestic product. e. does not affect GDP but is included in the value-added computations.
The wealth effect helps explain the slope of the aggregate-demand curve. This effect is
a. relatively important in the United States because expenditures on consumer durables is very responsive to changes in wealth. b. relatively important in the United States because consumption spending is a large part of GDP. c. relatively unimportant in the United States because money holdings are a small part of consumer wealth. d. relatively unimportant because it takes a large change in wealth to cause a significant change in interest rates.
Nontradables are goods or services that:
A. are cultural specific and not typically traded for that reason. B. can't legally cross a country's borders. C. can't be taken from place to place very easily or at all. D. are not allowed to leave a country.