If the equilibrium price of widgets is $22, and then a price ceiling of $24 is imposed by the government, as a result,
a. there will be no effect on the widget market.
b. there will be a shortage of widgets
c. there will be a surplus of widgets.
d. the price of widgets will increase.
a
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Here's a taste of economic history: in the United States, the government's Office of Price Administration (OPA) introduced a rationing system in
a. 1929 b. 1932 c. 1942 d. 1967 e. 1973
The statement "Gross domestic product (GDP) values all output equally" means that:
a. household production is treated the same as production by firms
b. depreciation of manufactured capital is treated the same as depletion of natural resources.
c. the purchase of pollution control equipment is valued the same as pollution itself.
d. leisure time is valued the same as time spent working a job.
e. the market price of output is the measure of that output's value.
When economists say goods are scarce, they mean:
A. consumers are too poor to afford the goods and services available. B. consumers are unwilling to buy goods unless they have very low prices. C. goods are generally freely available from nature in most countries. D. the desire for goods and services exceeds our ability to produce them with the limited resources available.
The quantity theory of money is a theory asserting that the quantity of money available determines the price level and the growth rate in the quantity of money determines the inflation rate.
Answer the following statement true (T) or false (F)