The above figure shows a graph of the market for pizzas in a large town. Suppose that concern over dietary habits has led the government to impose a restriction that limits suppliers to produce no more than 40 pizzas
What will the price of pizza be as a result of this quota? A) $2
B) $7
C) $8
D) $10
D
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When is a collusive agreement between two firms likely to break down?
What will be an ideal response?
Keynesian economics
a. affirms the classical economists' basic premise concerning competitive markets b. believes that monopolies and unions tend to be permanent fixtures in our economy and the prices they create tend to be flexible, at least downward c. emphasizes that an economy can never be in equilibrium at less than full employment d. prefers to emphasize aggregate supply over aggregate demand e. believes that unemployment results when aggregate demand is insufficient to reach a full-employment level of real GDP
If borrowers and lenders expect a higher rate of inflation,
a. nominal interest rates should decrease. b. nominal interest rates should remain constant. c. nominal interest rates should increase. d. real interest rates should increase.
The horizontal dotted line is
A. a price ceiling.
B. a price floor.
C. either a price ceiling or a price floor.
D. neither a price ceiling nor a price floor.