What is the effect of the establishment of a price ceiling below the equilibrium price?
a. increased production leading to excesses
b. increased demand leading to shortages
c. more goods available to consumers
d. fewer buyers looking to purchase goods
b. increased demand leading to shortages
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Ann Trepreneur was formerly a landlord, renting her building for $1,200 a month. She now uses her building for her own florist shop. Pick the true statement
A) The building costs Ann $1,200 per month. B) Ann incurs no opportunity cost on the building. C) Ann uses the building as a free good. D) None of the above is true.
Price discrimination, where different units of a good are sold for different prices
A) is impossible because there can only be one market price. B) can be effectively practiced by all monopolists. C) maximizes consumer welfare because each consumer pays only the price he or she is willing to pay. D) is possible if the good cannot be resold.
Most sales taxes are __________; most excise taxes are __________.
A. progressive; progressive B. regressive; regressive C. progressive; regressive D. regressive; progressive
First, explain what seignorage is. Second, write out and explain the expression that represents seignorage. And finally, what policies can a central bank implement to increase seignorage?
What will be an ideal response?