One likely result of a price ceiling is that:
A. a surplus of product would result.
B. the price charged in the market would be above the equilibrium price.
C. the price charged in the market would be the equilibrium price.
D. the available product must be rationed.
Answer: D
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What is another term for time value of money?
A. Net present value B. Internal rate of return C. Opportunity cost of funds D. Yield to maturity
Figure 4-15
In , suppose a price floor is established at $20.00. What is the result?
a.
a shortage of 10 units
b.
a surplus of 10 units
c.
a shortage of 20 units
d.
a surplus of 20 units
e.
there is no change from the situation that exists at the equilibrium price
Total profit (or loss)
A. is the rectangle bounded by OMGS.
B. is the rectangle bounded by OKER.
C. is the rectangle bounded by LMGF.
D. None of the choices are correct.
If MiiTunes and The Rock Shop are both in the music business and faced with the choices outlined in the figure, we can predict the outcome will be that:
This figure displays the choices and payoffs (company profits) of two music shops-MiiTunes and The Rock Shop. MiiTunes is an established business in the area deciding whether to charge its usual high prices or to charge very low prices, in the hopes that a new business will not be able to make a profit at such low prices. The Rock Shop is trying to decide whether or not it should enter the market and compete with MiiTunes.
A. MiiTunes charges high prices and The Rock Shop does not enter.
B. there is more than one stable outcome to this game.
C. there is no stable outcome to this game.
D. None of these statements is true.