A price ceiling leads to? a(n) ________ if it is set below the equilibrium price.
Answer: Demand is less price elastic than supply.
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Refer to Figure 4-9. What is the size of the unit tax?
A) $8 B) $5 C) $3 D) cannot be determined from the figure
Of all the virtual currency systems, VCS4 is poses the __________ risk to nations in which is it used because ___________________________
a. Highest; it is becoming more accepted and can be spent in the real world. b. Highest; when converted into legal tender, it has the potential to increase a nation's M2 money supply. c. Lowest; when converted into legal tender, it has only a small potential to increase a nation's M2 money supply. d. Lowest; it does not have the potential to raise a nation's price level or threaten its payment system.
Figure 10-5
In Figure 10-5, which graph best illustrates the situation of an economy near full employment that experiences an increase in autonomous consumer spending?
A. (1) B. (2) C. (3) D. (4)
Assume that the nominal exchange rate increases by 2%. If prices (both domestic and foreign do not change), we know that
A) domestic goods are now relatively cheaper. B) domestic goods are now relatively more expensive. C) foreign goods are now relatively cheaper. D) both B and C