Prior to the 1996 Summer Olympics in Atlanta, Georgia, the city passed legislation that effectively prevented hotels from increasing their rates during the games. Describe the effects of this legislation on the market for hotel rooms during the games
This legislation created a price ceiling below the market-clearing price for a hotel room during the
Olympics. This led to an excess demand for hotel rooms in the Atlanta area during the Olympics.
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The GATT's most-favored nation clause means that tariff reductions granted by a member of GATT to imports from one country
a. apply only to that country b. are only extended to certain favored members of GATT c. are extended to all other members of GATT d. must be matched by equivalent quota reductions e. are extended to all other countries of the world
Figure 19-3
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Of the graphs in Figure 19-3, where the dotted line shows the actual exchange rate, which one shows a country with an overvalued currency and a balance of trade deficit?
A. 1 B. 2 C. 3 D. 4
As output rises, AFC gets ________________.
Fill in the blank(s) with the appropriate word(s).
Following adjustments to a new equilibrium in a market, the equilibrium quantity remains unchanged, but the market clearing price is now lower. Which of the following could definitely have caused this outcome?
A. Demand decreased, and supply increased. B. Demand and supply both increased. C. Demand increased, and supply decreased. D. Demand and supply both decreased.