The excess demand created when the government imposes a price ceiling
a. shifts the equilibrium price upward to the price ceiling level
b. is the difference between the quantity demanded at the old equilibrium price and quantity supplied at the price set by the price ceiling
c. is the difference between the quantity demanded at the price set by the price ceiling and quantity supplied at the old equilibrium price
d. is the difference between the quantity demanded at the price set by the price ceiling and quantity supplied at the price set by the price ceiling
e. is the difference between the old equilibrium price and the price set by the price ceiling
D
You might also like to view...
Monetarists are of the opinion that the private economy is inherently
A. unstable and the public sector should be small in scope. B. unstable and the public sector should be large in scope. C. stable, but that the public sector should be large in scope. D. stable and that the government sector should be small in scope.
Under what conditions would firms be likely to support an industry-wide advertising ban?
What will be an ideal response?
Other things the same, a decrease in the price level causes real wealth to
a. fall, interest rates to fall, and the dollar to appreciate. b. fall, interest rates to rise, and the dollar to depreciate. c. rise, interest rates to rise, and the dollar to appreciate. d. rise, interest rates to fall, and the dollar to depreciate.
Since 1970, the U.S. economy has experienced 2 recessions.
Answer the following statement true (T) or false (F)