The above figure shows the demand and supply curves for housing. What would be the effects of a rent ceiling equal to $500 per month?
A) a surplus equal to 3,000 apartments
B) a shortage equal to 3,000 apartments
C) a shortage equal to 250 apartments
D) nothing because the rent ceiling has no effect on the equilibrium price and quantity
B
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The production of paper creates pollution, an external cost. What happens to the production of paper if the government imposes a tax on paper producers equal to the marginal external cost of the pollution?
What will be an ideal response?
In September 2008, Toyota Motor's share of the U.S. auto sales market was 15 percent, Ford's market share was 12.1 percent, GM's was 29.1 percent, Honda's was 10 percent, Nissan's share was 6.2 percent, and Chrysler's market share was 11.1 percent
What type of market structure would the market for autos represent? A) monopolistic competition B) monopoly C) oligopoly D) markets and competitive environment
At levels of output close to full employment, the aggregate supply curve is probably
A. very flat. B. very steep. C. sloped downward. D. perfectly elastic.
Negative current account balances are usually associated with
A) a shrinking of the international investment position. B) an improvement of the international investment position. C) a decrease in external debt. D) an increase in external debt.