Which of the following public policies is an example of a price ceiling?
A. Support prices for agricultural commodities
B Minimum wage laws
C Rent control program
D all of the above
C Rent control program
You might also like to view...
Monopolistic competition is characterized by excess capacity because
A. firms charge a price that is greater than marginal cost. B. firms produce at an output level less than the least-cost output. C. firms are always profitable in the long run. D. the demand for a product is perfectly elastic in this type of industry.
Lipitor, a heart medication with few substitutes, should have an own-price elasticity of demand that is:
a. Relative elastic b. Relatively inelastic c. Perfectly inelastic d. Perfectly elastic
The shortened work week coupled with rising hourly wages in the U.S. economy shows that
a. the income effect has been dominant. b. the substitution effect does not exist at all. c. the U.S. worker is no longer productive. d. workers have become increasingly lazy.
Subsidizing firms that pollute will reduce pollution in the long run
a. True b. False Indicate whether the statement is true or false