A price ceiling is
a. the lowest price that the law will allow to be charged in the market
b. the highest price that the law will allow to be charged in the market
c. the price that must be charged in the market
d. imposed if the government believes the equilibrium price is too low
e. applicable only in nonessential goods markets
B
You might also like to view...
Less developed countries, compared to industrialized ones, are more likely to have higher tariff rates.
Indicate whether the statement is true or false.
Farmers can plant either corn or soybeans in their fields. Which of the following would cause the supply of soybeans to increase?
A) an increase in the demand for corn B) an increase in the price of soybeans C) a decrease in the price of corn D) an increase in the price of soybean seeds
The official settlement balance
A) is an amount that the IMF requires each member country to pay annually. B) must by definition always be zero. C) equals the current account balance divided by the capital account balance. D) equals the net increase in a country's official reserve assets.
If a firm does NOT know its rival's profit function, then we consider that information to be
A) irrelevant in deciding its best strategy. B) private. C) common knowledge. D) Pareto sub-optimal.