A price ceiling:
a. is the lowest price that the law will allow to be charged in the market.
b. is the highest price that the law will allow to be charged in the market.
c. is the price that must be charged in the market.
d. would be imposed if the government believes the market equilibrium price is too low.
e. would only be applicable in the case of non-essential goods.
b
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What is the most accurate statement about the fraction of the US population that lived in urban areas between 1800 and 1910?
a. The fraction of the US population that lived in urban areas grew steadily throughout the period. b. The fraction of the US population that lived in urban areas decreased steadily throughout the period. c. In 1910, about 85% of the US population lived in cities over 100,000 people. d. In 1800, more than half of the US population lived in towns over 2,500 people.
A monopoly exists because of
a. barriers to entry b. the large number of buyers and sellers c. the absence of barriers to entry d. collusion among the dominant firms e. the absence of exclusive government franchises
The above figure shows the U.S. market for chocolate. With no international trade, consumer surplus is equal to ________ and producer surplus is equal to ________
A) area A + area B + area C + area D; area E B) area B + area C + area D; area A + area E C) area A; area E D) area C + area D; area B + area E E) area E; area A + area B + area C + area D
If the market price is at equilibrium, the deadweight loss is zero
Indicate whether the statement is true or false