Suppose the market-clearing price of milk is $3.00 per gallon, but consumer groups persuade the government to set and enforce a maximum price cap at $2.00 per gallon. The newly legislated price tends to
A) create a surplus of milk.
B) increase the demand for milk.
C) reduce the supply of milk.
D) do all of the above.
E) do none of the above.
E
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Refer to Table 11-3. The table above refers to the relationship between the quantity of workers employed and the number of cardboard boxes produced per day by Manny's House of Boxes. The capital used to produce the boxes is fixed
Diminishing returns to labor are first observed in this example after Manny hires the ________ worker. A) second B) third C) fourth D) fifth
Measured as a share of the economy, government expenditures:
a. have been between 10 and 15 percent of the U.S. economy since 1930. b. have been between 20 and 25 percent of the U.S. economy since 1930. c. rose from less than 10 percent in 1929 to about 35 percent currently. d. declined from more than 50 percent in 1929 to approximately 25 percent currently.
A situation in which an individual has no information about probabilities and the underlying distributions of the possible outcomes of an investment choice is called:
a. a prior distribution. b. updating. c. risk tolerance. d. pure uncertainty.
The prisoner's dilemma is an example of a:
A. nonstrategic game. B. cooperative game. C. noncooperative game. D. sequential game.