Suppose the equilibrium price of bread is $2.00 per loaf. If the government sets a price ceiling of $1.50 per loaf:
a. the equilibrium price of wheat will fall and a shortage of wheat will be created.
b. the quantity of wheat supplied will increase
c. the quantity of wheat demanded will decrease.
d. there will be a shortage of bread.
d
You might also like to view...
When Italy buys Boeing jets, the price Italy pays is ________ if it produced its own jets and the price Boeing receives is ________ than it could receive from an additional U.S. buyer
A) lower than; lower B) higher than; higher C) lower than; higher D) higher than; lower E) the same as; higher
The small but non-trivial costs that a firms incurs when changes product prices are also called
A) menu costs. B) price inertia. C) sticky costs. D) sunk costs.
If a short-run fixed cost is sunk, then
A) losses can be minimized by shutting down. B) the firm should keep producing to cover the sunk cost. C) the cost cannot be avoided by shutting down. D) Both B and C.
An economic system includes
a. money, stocks and bonds b. a mechanism for allocating resources and a mode of resource ownership c. a mechanism for dividing up resources and a way to ensure that technology advances d. a mechanism for allocating stocks, bonds and money and a mode of technology e. government ownership, labor time, and machines