A price ceiling that sets the price of a good below market equilibrium will cause
a. an increase in quantity demanded of the good.
b. a decrease in quantity supplied of the good.
c. a shortage of the good.
d. all of the above.
D
You might also like to view...
In 2002 some politicians and many representatives of the steel and iron-ore mining industries in the U.S. complained foreign steel producers were illegally "dumping" steel and contributing to a potential unemployment problem
According to the economic way of thinking, their argument is questionable because A) it is not at all clear what the appropriate or correct price of steel is. B) it is not at all clear what the appropriate or correct cost of steel is. C) it is not at all clear that such an activity increases total unemployment in the U.S. D) all of the above are true.
The availability of substitutes makes the demand for a good less elastic
a. True b. False
Most cartels self-destruct because cartel members cheat
Indicate whether the statement is true or false
A decrease in government spending and the enactment of an investment tax credit would definitely cause
a. the quantity of loanable funds traded to increase. b. the interest rate to increase. c. the quantity of loanable funds traded to decrease. d. the interest rate to decrease.