When a government increases an effective price ceiling for a product
A) the shortage in the market will be reduced.
B) the shortage in the market will be increased.
C) the surplus in the market will be reduced.
D) the surplus in the market will increase.
A
You might also like to view...
Refer to Figure 19-9. According to the graph, is there a surplus or shortage of Saudi Arabian riyal in exchange for U.S
dollars? To maintain the pegged exchange rate, will the Saudi central bank need to buy riyal in exchange for dollars or sell riyal in exchange for dollars? How many riyal will the Saudi central bank need to buy or sell?
Marginal, average, and total figures are bound together. If any two are known, the third can be calculated
a. True b. False Indicate whether the statement is true or false
Consumer surplus is the difference between the worth of a commodity to the consumer and the price the consumer pays for the commodity
a. True b. False Indicate whether the statement is true or false
The local residential electrical power industry can be best modeled using the model of
A. oligopoly. B. perfect competition. C. monopolistic competition. D. monopoly.