Suppose a price ceiling is currently set below the equilibrium price. Now suppose that policy makers decide to lower the price ceiling. This reduction in the price ceiling will cause which of the following to occur?
A) The shortage in the market will decrease.
B) The shortage in the market will increase.
C) The surplus in the market will decrease.
D) The surplus in the market will increase.
Answer: B
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Economists use the term "demand" to refer to
A. a particular price-quantity combination on a stable demand curve. B. an upsloping line on a graph that relates consumer purchases and product price. C. a schedule of various combinations of market prices and quantities demanded. D. the total amount spent on a particular commodity over a fixed time period.
If workers' money wage rates increase by 5 percent and the price level remains constant, workers'
A) quantity of labor supplied will decrease. B) quantity of labor supplied will increase. C) quantity of labor supplied will not change. D) demand for jobs will decrease.
Congress initially intended for the Medicaid program to provide basic safety net coverage for certain vulnerable populations, including all the following but one.
a. Disabled individuals less than 65 b. Working age adults without dependents c. Single, pregnant women with or without dependents d. Single men with dependents e. Children in low-income households
The vertical distance between the horizontal axis and any point on a nondiscriminating monopolist's demand curve measures:
A. the quantity demanded. B. product price and marginal revenue. C. total revenue. D. product price and average revenue.