Price ceilings are imposed if the government believes
a. the market fails to create an equilibrium price
b. the equilibrium price is too low
c. an excess supply of the good exists or will result in the near future
d. the equilibrium price is too high
e. quantity demanded is less than quantity supplied
D
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Explain the long-adjustment process that take place in a monopolistically competitive industry that is earning pure economic profits
What will be an ideal response?
A study of expenditures on food in cities resulting in the following equation: Log E = 0.693 Log Y + 0.224 Log N where E is Food Expenditures; Y is total expenditures on goods and services; and N is the size of the family. This evidence implies:
a. that as total expenditures on goods and services rises, food expenditures falls. b. that a one-percent increase in family size increases food expenditures .693%. c. that a one-percent increase in family size increases food expenditures .224%. d. that a one-percent increase in total expenditures increases food expenditures 1%. e. that as family size increases, food expenditures go down.
The production of smoke as a pollutant is a failure of the market system
a. True b. False Indicate whether the statement is true or false
Consumer surplus is defined as
A. the value that the consumer places on a good over the amount they pay for it. B. the money that the producer gets from a good over the amount they are willing to sell it for. C. when quantity demanded is greater than quantity supplied. D. when quantity supplied is greater than quantity demanded.