Consider the above table. If the government imposes a price ceiling on garbanzo beans of $8, what would be the likely result?
A) a surplus of 2,000 garbanzo beans on the market
B) a shortage of 2,000 garbanzo beans on the market
C) Market equilibrium will be reached.
D) The quantity demanded of garbanzo beans would fall to zero.
C
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Oil and oil products remain the main fuel for cars, planes, ships, and power plants. The amount of oil still in the earth is finite. Given this information, the supply of gasoline is ________.
A. relatively elastic B. greater than the quantity demanded C. relatively inelastic D. unit elastic
Which of the following tax systems would help reduce income inequality the most?
A) a consumption tax system B) a proportional tax system C) a progressive tax system D) a regressive tax system
Unlike consumption, which is fairly stable over time, investment is subject to erratic fluctuations
Indicate whether the statement is true or false
If your income increases from $40,000 to $48,000 and your consumption increases from $35,000 to $39,000, your marginal propensity to consume (MPC) is:
A. 0.20. B. 0.40. C. 0.50. D. 0.80.