After a price ceiling of $8 is placed on the market in the graph shown:
A. some consumers benefit because they pay a lower price.
B. producers lose because they sell at a lower price.
C. the quantity traded in the market falls.
D. All of these are true.
D. All of these are true.
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Specialization and trade benefits all participants only if: a. They specialize in those things they have both a comparative and absolute advantage in
b. They specialize in those things they have a comparative advantage in, even if they have an absolute disadvantage. c. They specialize in those things they have an absolute advantage in, even if they have a comparative disadvantage. d. Traders have the same opportunity cost of production
Suppose that Deon places a $150 value on a new MP-3 player, and Juanita places a $140 value on it. The cost of the MP-3 player is $130 . Suppose the government levies a $15 tax on MP-3 players, which raises the price to $145 . What is the deadweight loss created by the tax?
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 downwardly. C. emphasizes the possibility that an economy can never be in equilibrium at less than full employment. D. believes that unemployment results when aggregate demand is insufficient to reach a full-employment level of real GDP.
State and local governments' fiscal policies typically reinforce the fiscal policy of the federal government to counter recession and inflation.
Answer the following statement true (T) or false (F)