The above figure shows the market for a prescription drug. What is the equilibrium price of the drug? How many doses are purchased? Suppose the government imposes a price ceiling of $1.50 a dose
How many doses are purchased after the price ceiling is imposed?
The equilibrium price is $2.50 per dose. The number of doses purchased is the equilibrium quantity, 8,000 doses per day. After the price ceiling is imposed, the number of doses purchased is 4,000 per day, which is equal to the quantity of doses supplied at the price of $1.50 per dose.
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Suppose an economy produces milk and honey, and milk is plotted along the horizontal axis of the production possibilities frontier
If the production in the economy is centrally planned (and not market oriented) so that the MRS for the current production level is 3 but the MRT is 2, then there will be an excess ________ for milk and an excess ________ for honey. A) demand, supply B) demand, demand C) supply, demand D) supply, supply E) The market is in equilibrium, and there are no imbalances in supply or demand.
The intended gains from U.S. tariffs and other trade restrictions can backfire if foreign governments retaliate by imposing additional trade restrictions on U.S. goods sold in their countries
a. True b. False Indicate whether the statement is true or false
Which price structure would tend to most effectively promote water conservation?
a. Uniform block structure b. Constant price structure c. Increasing block structure d. Decreasing block structure e. Marginal price structure
A decrease in the tax rate will ________ the disposable income of households and ________ the size of the multiplier effect
A) increase; increase B) decrease; increase C) increase; decrease D) decrease; decrease E) increase; not change