If a price ceiling is to be effective, it should be set
A. Below the equilibrium price, and it will create a market surplus.
B. Above the equilibrium price, and it will create a market shortage.
C. Above the equilibrium price, and it will create a market surplus.
D. Below the equilibrium price, and it will create a market shortage.
Answer: D
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Which of the following are included in the supply of loanable funds?
I. private saving II. government budget surplus III. international borrowing A) I, II and III B) I and III C) II and III D) I and II
Assume price exceeds average variable cost over the relevant range of demand. If a monopolistically competitive firm is producing at an output where marginal revenue is $23 and marginal cost is $19, then to maximize profits the firm should
A) continue to produce the same quantity. B) decrease output. C) shut down. D) increase output.
The formula for finding the present value of an amount M that will be received one year from now, when the interest rate is R, is
A) M × (1 + R/100). B) M × (1 + R). C) M / (1 + R). D) M / R. E) M / (100R).
Which of the following contribute to increases in productivity?
a. incentives for innovation b. more physical capital c. an improved education system d. all of the above