In a competitive market illustrated by the diagram below, a price ceiling of $10 per unit will result in:
A. A shortage of 200 units
B. A surplus of 200 units
C. A surplus of 250 units
D. A shortage of 250 units
A. A shortage of 200 units
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The figure illustrates the market for bagels. If the number of bagels is cut from 20 to 10 an hour, the deadweight loss is ________
A) $0.50 a bagel B) -$5.00 an hour C) $0 an hour D) $5.00 an hour
Economies of scale in information production are enjoyed by
A) small borrowers. B) small lenders. C) large borrowers. D) large lenders.
If the international price of oranges is less than the domestic price of oranges in Spain, then Spain will export oranges to other countries
a. True b. False Indicate whether the statement is true or false
Which of the following is a valid concern about the national debt for a country whose debt is held entirely by its citizens?
a. The welfare of future generations will be directly related to the per capita size of the national debt that they inherit. b. Growth of the national debt will eventually lead to the bankruptcy of the government. c. When the debt comes due, future generations may be unable to pay it off. d. If the increases in the national debt reduce private expenditures on capital formation, future generations may have lower incomes because they will inherit a smaller stock of capital.