Refer to the above figure. If the government imposes a price ceiling of $60
A. the quantity traded will be 150, and the price will be $60.
B. the quantity traded will be 150, and the price will be $40.
C. the quantity traded will be 100, and the price will be $60.
D. the quantity traded will be 200, and the price will be $60.
Answer: B
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A thin market usually does not allow the use of futures contracts or other hedging tools
Indicate whether the statement is true or false
In the short run,
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The equation of exchange which is MV = PY is an identity, which means it is true by definition. If you think carefully, what variable in the equation by the way it is defined really makes the equation of exchange an identity?
What will be an ideal response?