In the above figure, a black market emerges with a
A) price ceiling of $4.
B) price floor of $2.
C) price floor of $4.
D) a rationed quantity 30.
C
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Suppose that the MPC out of disposable income was 0.8 and the marginal tax rate was 0.25 for a given economy. In this case, the value of the tax multiplier in the simple Keynesian model would be
a. 1. b. -2. c. 2.5. d. 2. e. none of the above.
The Argentinian crisis of 2001 was brought about by:
A. debt crisis. B. exchange rate crisis. C. excessive loss of national resources. D. None of these statements is true.
Suppose that for a given good demand decreases and supply increases at the same time. If demand decreases by a greater amount than supply increases, then equilibrium price __________ and equilibrium quantity __________ for that good
A) rises; rises B) rises; falls C) falls; rises D) falls; falls
An economy operating its plant and equipment at full capacity implies a capacity utilization rate of
A. 40 percent. B. 70 percent. C. 85 percent. D. 100 percent.