In the graph shown above, if the government set a price ceiling of $18
A. the price would rise to the equilibrium price.
B. the price would fall to equilibrium price.
C. there would be a temporary shortage, then price would rise to equilibrium price.
D. there would be a permanent shortage, at least until the price ceiling was lifted.
D. there would be a permanent shortage, at least until the price ceiling was lifted.
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What is the relationship between the gross domestic product of a country and its gross national product?
What will be an ideal response?
Why is the Fed referred to as the "lender of last resort"?
What will be an ideal response?
What is the historical relationship in the United States between the unemployment rate and recessions?
A) The relationship depends on whether or not the price level is also changing. B) The unemployment rate rises during a recession and turns negative during the subsequent recovery. C) The unemployment rate rises shortly before a recession begins and declines shortly before it ends. D) The unemployment rate rises soon after a recession has begun and starts to decline sometime after the recovery has started. E) There is no regular or systematic link that can be discerned from the data.
When the price of a CD is $13 per CD, 39,000,000 CDs per year are supplied. When the price is $15 per CD, 41,000,000 CDs per year are supplied. What is the elasticity of supply for CDs?
A) 2.86 B) 0.35 C) 0.14 D) 0.05