The government imposes a maximum price on apartments that is above the equilibrium price. You accurately predict that
A. the law will create a surplus of apartments.
B. landlords are less likely to do routine maintenance work in the apartments.
C. renters will find that landlords start offering to furnish the apartments.
D. the law will have no economic impact.
Answer: D
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________ imposes a conceptual structure and inherent discipline on policy makers, but without eliminating all flexibility
A) Constrained discretion B) A policy rule C) A discretionary policy D) The Taylor rule
Which of the following changes would cause American net exports to increase?
A) An increase in the real value of the dollar B) An increase in American income C) An increase in foreign income D) A shift in demand by American consumers away from domestically produced goods
Suppose the equilibrium price in a perfectly competitive industry is $10 and a firm in the industry charges $9 . Which of the following will happen?
a. The firm will not sell any output. b. The firm will sell less output than its competitors. c. The firm will make more profit than it could at the $10 price. d. The firm will make less profit than it could at the $10 price. e. The firm's revenue will increase and its costs may decrease.
Suppose the market price for one unit of a good is $12.50, and 50 units will be exchanged at that price. If a price floor is imposed at $12.00 per unit, the price will: a. fall to $12.00, and quantity will fall below 50 units
b. fall to $12.00, and quantity will remain at 50 units. c. remain at $12.50, and quantity will rise above 50 units. d. remain at $12.50, and quantity will remain at 50 units.