In a market where supply and demand curves are both highly inelastic, a price ceiling will have a(n)
a. large effect on quantity supplied and little effect on quantity demanded
b. large effect on quantity demanded and little effect on quantity supplied
c. large effect on both quantity demanded and quantity supplied
d. little effect on both quantity demanded and quantity supplied
e. effect only on price
D
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Refer to Figure 3-4. At a price of $20, how many units will be sold?
A) 400 B) 500 C) 600 D) 800
John's utility from an additional dollar increases more when he has $1,000 than when he has $10,000. From this, we can conclude that John
A) is risk averse. B) is risk loving. C) is risk neutral. D) has a negative marginal utility of wealth.
The smaller the reserve ratio the:
A. less a bank can loan out. B. smaller is the money multiplier. C. less money is created in the economy. D. greater the money is created in the economy.
The Montreal Protocol uses the following instruments to protect the ozone layer
a. a CFC production and consumption allowance market b. a fund to subsidize developing countries c. a deposit-refund system for CFC substances d. all of the above e. a and bonly