Assume a market is producing efficiently. Which type of government intervention in this market might create a deadweight loss?
i. a price ceiling
ii. a price floor
iii. a price support
A) i only
B) i and ii
C) iii only
D) ii and iii
E) i, ii, and iii
E
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In a perfectly competitive market, which of the following determines the market price?
A) market demand and a firm's supply B) market supply and a firm's demand C) a firm's demand and its supply D) market demand and market supply
A legal entity, distinct form any individual persons, that has the power to own property and conduct business.
What will be an ideal response?
The equilibrium price and quantity in Figure 3.2 are, respectively,
Figure 3.2 Supply and Demand
A. $12 and 20 units. B. $12 and 40 units. C. $6 and 20 units. D. $9 and 30 units.
"The Case of ATMs" best illustrates the:
A. law of diminishing marginal utility. B. the substitutability of resources. C. idea of derived demand. D. principle of unintended side-effects.