A price ceiling ________
A) makes it illegal to charge a higher price than the specified price
B) is more effective when it is higher
C) is necessary to maintain market equilibrium
D) occurs in housing markets only
A
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If the demand and supply curves for a commodity shift to the right by the same amount, then in comparison to the initial equilibrium, the new equilibrium will be characterized by:
A) a higher quantity and price. B) a lower quantity and a higher price. C) the same quantity and a lower price. D) a higher quantity and the same price.
A successful strategy of price discrimination requires that a firm be a price taker
Indicate whether the statement is true or false
Assuming that charitable giving is a normal good, the income effect of a decrease in personal tax rates would lead to
A. more giving because households would have more disposable income. B. more giving because giving to charity would become less expensive relative to other goods. C. less giving because giving to charity would become more expensive relative to other goods. D. less giving because households would spend that money on luxury goods.
A good is characterized by network economies if it:
A. is widely advertised on television. B. becomes more valuable as more people own it. C. can be used by more than one person at a time. D. becomes cheaper to produce as more people buy it.