Rent controls tend to cause persistent imbalances in the market for housing because
a. Quantity demanded exceeds quantity supplied but price cannot rise to remove the shortage.
b. Quantity demanded exceeds quantity supplied but price cannot fall to remove the surplus.
c. Quantity supplied exceeds quantity demanded but price cannot rise to remove the shortage.
d. Quantity supplied exceeds quantity demanded but price cannot fall to remove the surplus.
A
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Use the following diagram of the market for product X to answer the question below.
Curve St embodies all costs (including externalities) and Dt embodies all benefits (including externalities) associated with the production and consumption of X. Assuming the market equilibrium output is Q1, we can conclude that the existence of external
A. costs has resulted in an overallocation of resources to X. B. benefits has resulted in an underallocation of resources to X. C. costs has resulted in an underallocation of resources to X. D. benefits has resulted in an overallocation of resources to X.
From World War II through 2010, the United States experienced ________ recessions
A) 2 B) 5 C) 11 D) 15
Why are sellers willing to sell more at a higher price?
What will be an ideal response?
A firm that maximizes profits also
A) is inefficient. B) cuts corners in production processes so that its products are made too cheaply. C) uses the least-cost combination of resources. D) pays input prices lower than other firms do.