If a city government enacts a maximum price on rent,
A) quantity supplied will decrease.
B) quantity demanded will increase.
C) allocational problems develop.
D) All of the above.
D
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Along a downward-sloping linear demand curve, total revenue is greatest if demand is
a. inelastic b. elastic c. inelastic when prices are high d. elastic when prices are high e. unit elastic
In a price index, the quantity of goods and services being measured between two periods
a. must be increased. b. must be held constant. c. must be decreased. d. should be increased or decreased.
If a bank has $500 in excess reserves and the reserve requirement is 20 percent, then the maximum amount by which this individual bank can increase the money supply is _____
a. $100 b. $400 c. $500 d. $1,000 e. $2,500
According to liquidity preference theory,
a. an increase in the interest rate reduces the quantity of money demanded. This is shown as a movement along the money-demand curve. An increase in the price level shifts money demand to the right. b. an increase in the interest rate increases the quantity of money demanded. This is shown as a movement along the money-demand curve. An increase in the price level shifts money demand leftward. c. an increase in the price level reduces the quantity of money demanded. This is shown as a movement along the money-demand curve. An increase in the interest rate shifts money demand rightward. d. an increase in the price level increases the quantity of money demanded. This is shown as a movement along the money-demand curve. An increase in the interest rate shifts money demand leftward.