A shortage will result whenever:
a. the government imposes a price floor below equilibrium price.
b. the government imposes a price ceiling above equilibrium price.
c. the government imposes a price floor above equilibrium price.
d. the government imposes a price ceiling below equilibrium price.
d
You might also like to view...
The stock of high-powered money in the economy is $80 billion. The bank reserve-holding ratio is 0.12 and the public wishes to hold 10% of its deposits as cash. The level of bank deposits will be
A) $333 billion. B) $100 billion. C) $250 billion. D) $200 billion.
Economists believe that public debt
a. always promotes overconsumption b. promotes overconsumption if people view the government's liabilities as their own c. promotes overconsumption if people fail to view the government's liabilities as their own d. cannot promote overconsumption e. promotes underconsumption if people view the government's liabilities as their own
When people get satisfaction from charitable giving, they are ______.
a. decreasing their opportunity costs b. decreasing their utility c. acting selfishly d. acting out of rational self-interest
When the price of a pound of oranges is $1.00, 7500 pounds of oranges are demanded. When the price of a pound of oranges decreases to $0.80, 10,000 pounds of oranges are demanded. In this price range the demand for oranges is
A. elastic. B. perfectly elastic. C. unit elastic. D. inelastic.