Price ceilings have to be set above the undistorted market equilibrium price in order to have any impact.
Answer the following statement true (T) or false (F)
False
Rationale: They have to be set below market price to have an impact.
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An increase in the price of a product and an increase in the number of sellers in the market affect the supply curve in the same general way
a. True b. False Indicate whether the statement is true or false
What does a production possibilities frontier show?
a) scarce and less scarce resources b) global trade-offs and costs of doing business c) an economy that is producing but not at the maximum d) the maximum amount that an economy can produce
The Coase theorem states that
A. the private sector will fail to produce the efficient amount of a public good because of the free-rider problem. B. if there are external costs in production, the government must intervene in the market to assure that the efficient level of output is produced. C. under certain conditions, private parties can arrive at the efficient solution without government involvement. D. public goods should be produced up to the point where the additional benefit received by society equals the additional cost of producing the good.
Marginal analysis of a 'one thing' decision
What will be an ideal response?