According to the HO model,
A) everyone automatically gains from trade.
B) the gainers from trade outnumber the losers from trade.
C) the scarce factor necessarily gains from trade.
D) None of the above.
B
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One likely result of a price ceiling is that
a. an excess supply of the good results b. the price would be above the equilibrium price c. the price would be the equilibrium price d. the good must be rationed e. the supply curve shifts to the right
Suppose demand increases and supply increases. Which of the following will happen?
a. Equilibrium price will rise, fall, or stay the same while equilibrium quantity will decrease. b. Equilibrium price will rise, fall, or stay the same while equilibrium quantity will increase. c. Equilibrium quantity will rise, fall, or stay the same and equilibrium price will increase. d. Equilibrium quantity will rise, fall, or stay the same while equilibrium price will decrease. e. The change in equilibrium price and quantity cannot be determined.
Which of the following would be the most typical behavior for landlords renting rent-controlled apartments?
a. financing the construction of more housing b. earning large profits from rentals c. lowering the rents for apartments d. avoiding routine maintenance
A good is classified as inferior if:
A. consumers buy less when the price rises. B. consumers buy less when income rises. C. consumers buy less when the price falls. D. consumers buy more when income rises.