Given the demand and supply conditions shown in Figure 4-2, if the government imposes a price ceiling of a, indicate the quantity consumers would like to buy and the amount producers would be willing to supply.
a. Consumers would want to buy t; producers would be willing to sell r.
b. Consumers would want to buy r; producers would be willing to sell t.
c. Consumers would want to buy t; producers would be willing to sell s.
d. Consumers would want to buy s; producers would be willing to sell s.
b. Consumers would want to buy r; producers would be willing to sell t.
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Many individuals without health insurance receive "free" care. What are the sources of most of the care they receive?
a. Public hospitals and clinics. b. Private, not-for-profit hospitals. c. Private, for-profit hospitals. d. Multi-specialty physicians' practices. e. Solo practitioners and their associates.
Long-lasting resources used to expand the production of goods and services in the future are called
a. consumables. b. capital goods. c. consumer durables. d. inventories.
When sellers have more information about the quality of a good than buyers do, a relatively large share of the goods in the market will be low-quality goods. This is the ________ problem.
A. free-rider B. law of diminishing returns C. adverse selection D. moral hazard
Suppose the wage rate in a certain industry falls, yet firms hire fewer workers. The best explanation of this is that labor:
A. demand fell. B. demand increased. C. supply fell. D. supply increased.