After a price ceiling of $8 is placed on the market in the graph shown:
A. producers lose because they sell at a lower price.
B. the quantity traded in the market falls.
C. some consumers benefit because they pay a lower price.
D. All of these are true.
Answer: D
You might also like to view...
Inputs, or factors of production, include
A. labor. B. machinery. C. natural resources. D. All of the responses are correct.
When will speculators' actions raise social welfare?
a. Always. b. When they drive down market prices. c. When their expectations prove to be correct. d. When they are not risk averse.
Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower
Are markets always in equilibrium?
A. Yes, they are always at the equilibrium point, or very close to it. B. Yes, because few things tend to alter supply and demand. C. No, but if there is no interference, they tend to move toward equilibrium. D. No, they never “settle down” into a stable price and quantity. E. Uncertain, economic theory has no answer to this question.