Suppose the market clearing price is $20 and the price ceiling is $15. The price that prevails in the market will be
A) $20.
B) $15.
C) less than $15.
D) $0.
A
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What is a Lorenz curve?
What will be an ideal response?
From an economic perspective, price discrimination is desirable because
A) the increase in profits is more than offset by the loss in consumer surplus, resulting in a net increase in economic surplus. B) it redistributes wealth from wealthy consumers to highly innovative firms. C) it enables firms to increase profits with no loss in economic surplus, and in turn, this could provide firms with incentives to engage in beneficial product innovation. D) the increase in profits results in higher corporate tax revenues received by the government which could be used to subsidize consumption for low-income individuals.
Refer to Table 20-18. Looking at the table above, what is the rate of growth of real average hourly earnings from 2015 to 2016?
A) 7.8% B) 6.25% C) 4% D) -4%
Any policy that seeks to influence the level of aggregate demand is called
A) productivity policy. B) stabilization policy. C) aggregate policy. D) employment policy.