Figure 4-19
Refer to . When the price ceiling applies in this market and the supply curve for gasoline shifts from S1 to S2, the resulting quantity of gasoline that is bought and sold is
a.
less than Q3.
b.
Q3
c.
between Q1 and Q3.
d.
at least Q1.
a
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How does the demand curve for an oligopoly firm differ from the demand curves for firms in competitive market structures?
What will be an ideal response?
The goal of programs such as government-subsidized housing, food stamps, and Medicaid are to:
A. spur economic growth. B. redistribute wealth from the rich to the poor. C. reduce the time people spend in transient poverty. D. None of these is true.
Which of the following combinations would not produce conflicting effects on the supply of money? a. The Fed pays a higher interest rate on bank reserves and increases the required reserve ratio
b. The Fed conducts an open market purchase and lowers the discount rate. c. The Fed pays a higher interest rate on bank reserves and conducts an open market sale of government securities. d. None of the above would produce conflicting effects on the supply of money
In the graph above, A is the initial budget line and B is the new budget line. Which of the following changes might have occurred?
A. P1 decreased, P2 was unchanged, income increased. B. P1 increased, P2 decreased, income was unchanged. C. P1 decreased, P2 increased, income was unchanged. D. P1 was unchanged, P2 increased, income decreased.