Which of the following is likely to happen if the government imposes a price control at $60, when the demand curve shifts to D2?
A) There will be a shortage of 15 units of the good in the market.
B) There will be a surplus of 15 units of the good in the market.
C) There will be a shortage of 10 units of the good in the market.
D) There will be a surplus of 10 units of the good in the market.
A
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The circular flow of income involves the idea that
A) the seller of a good receives exactly the same amount as the buyer spends. B) in every economic exchange one party takes advantage of the other party. C) the seller of a good receives more than the buyer spends. D) the seller of a good receives less than the buyer spends.
What is a fixed exchange rate and how is its value fixed?
What will be an ideal response?
Mary Ann and Don provide catering services in a perfectly competitive market. When they started in business, the going rate was $50 per person per meal. After the price increased to $60, they became willing to supply more meals. Their response to the price change is shown by
a. a rightward shift of the market supply curve b. a leftward shift of the market supply curve c. movement up along their firm's marginal cost curve d. movement down along their firm's marginal cost curve e. a rightward shift in their demand for jobs
When calculating the price elasticity of demand, we assume that the price of the good changes while all other variables affecting
a. demand except buyers' incomes remain constant b. demand except the population size remain constant c. demand and supply remain constant d. supply remain constant e. demand remain constant