Price ceilings and price floors
A) shift demand and supply curves and therefore have no effect upon the rationing function of prices.
B) interfere with the rationing function of prices.
C) make the rationing function of free markets more efficient.
D) cause surpluses and shortages, respectively.
B
You might also like to view...
List six essential ingredients for economic growth
What will be an ideal response?
Limits on the value of the assets that commercial banks can acquire relative to their capital is known as:
A) equity requirements B) capital requirements C) required reserves D) asset requirements
Present discounted value refers to the
A. Value today of future payments adjusted for inflation. B. Value today of future payments adjusted for interest accrual. C. Value today of future payments adjusted for risk. D. Future value of today's dollars.
Suppose an individual demand curve is given by P = 100 - 5Q, where P is the price of smoothies and Q is the quantity she consumes. Assuming her income per week is $1,000 and the current price of smoothies is $5 each, by how much will her consumer surplus decline if the price of smoothies increased to $10 each?
A. $810 B. $25 C. $950 D. $92.5