Suppose a price ceiling is set by the government below the market equilibrium price. Which of the following will result?
a. The demand curve will shift to the left.
b. The quantity demanded will exceed the quantity supplied.
c. The quantity supplied will exceed the quantity demanded.
d. There will be a surplus.
b
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A decline in the domestic real interest rate would cause a ________ in net exports and a ________ in the exchange rate
A) rise; rise B) rise; fall C) fall; rise D) fall; fall
A firm that shuts down in the short run experiences losses equal to its
A) total fixed costs. B) average variable costs. C) total variable costs. D) total variable costs minus its total fixed costs.
Choice architects know that whether something feels like a loss or gain often depends on how:
A. often the decision is made. B. it is structured in terms of time to make the decision. C. it is framed. D. large the outcome is.
Entry leads to higher prices and profits in an industry.
Answer the following statement true (T) or false (F)