Explain how the market for gasoline would react to this price ceiling if the oil-producing nations increased production and drove the equilibrium price of gasoline to $2.50 a gallon. Would the U.S. gasoline market be effi-cient?
What will be an ideal response?
If the equilibrium price of gasoline is $2.50 a gallon, then a price ceiling of $3.00 a gallon has no effect on the market because it does not change the equilibrium price. The market is efficient because at the equi-librium the marginal benefit equals the marginal cost.
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From the late 1860s until 1907 the U.S. averaged a four percent or more increase in the real value of the goods and services produced
Indicate whether the statement is true or false
The Framework Convention on Climate Change took place in
A) the 1973-1979 Tokyo Round. B) the 1987-1993 Uruguay Round. C) the 1997 Kyoto Protocol. D) the 2001 Doha Round.
In a simple closed economy, the income approach to calculating GDP is:
A. wages + interest + rental income + profits. B. wages + interest + government income + profits C. wages + government earned interest + rental income + profits D. wages + interest + rental income profits.
A current account deficit
a. is an outflow of financial capital. b. means the country is lending to the rest of the world. c. is an inflow of financial capital. d. means the rest of the world is lending the country.