Governments sometime create an excess supply of a product by setting a minimum price that is greater than the equilibrium price, resulting in a permanent excess supply of the product. This is known as a price ceiling
Indicate whether the statement is true or false
FALSE
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An improvement in a firm's technology that reduces its production costs will result in a(n):
a. rightward shift of the supply curve. b. increase in supply. c. increase in quantity supplied at any given price. d. all of these are true.
Which of the following items is included when computing M1?
a. Coins in circulation. b. Currency in circulation. c. Checking accounting entries. d. All of the above. e. None of the above
Which of the following would most likely cause an increase in the demand for oatmeal?
a. An increase in the price of eggs b. An increase in the price of orange juice c. A fall in the price of corn flakes d. A fall in the price of oatmeal e. An increase in the price of cigarettes
Of the following, which is the best example of good with a perfectly inelastic demand?
A) the demand for gasoline B) the demand for tickets in New York City when the Mets or Yankees are in the World Series C) the demand for a college education by a student who has a full scholarship to an Ivy League school D) a diabetic's demand for insulin