The above figure shows the market for winter jackets. In an effort to keep the nation warm, the president places a price ceiling of $100 in the market for winter jackets. What would be the maximum price someone would pay in the black market?
A) $100 per jacket
B) $120 per jacket
C) $130 per jacket
D) $90 per jacket
E) $140 per jacket
C
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Any firm, competitive or not, desiring to maximize profits, will choose its quantity according to the rule, produce that quantity at which
a. marginal revenue = price. b. marginal revenue = marginal cost. c. average variable cost is at its minimum. d. marginal cost is at its minimum.
If an economy experiences an increase in its labor force, everything else constant, then at constant world prices, it will
A) produce more of the labor intensive good and less of the capital intensive good. B) produce more of both goods. C) produce the same amount of both goods. D) produce less of the labor intensive good and more of the capital intensive good.
Which of the following is the most efficient means of trade?
A) barter B) money C) government rationing D) the combination of barter with some government rationing
If the marginal propensity to consume (MPC) is 0.80, and if policy makers wish to increase real GDP $200 billion, then by how much would they have to change taxes?
A. ?$240 million. B. ?$200 million. C. ?$180 million. D. ?$50 million.