Assume that the market clearing price for a shirt is $20, but that the maximum price that can be charged is $15. This is an example of
A) a price control that will lead to a surplus of shirts on the market.
B) a price floor that will lead to a shortage of shirts on the market.
C) markets failing to ration a fixed quantity of a good.
D) a price ceiling that will likely lead to a shortage of shirts on the market.
D
You might also like to view...
If an import quota is imposed on imports of shrimp into the United States, U.S. producer surplus from shrimp will ________ and U.S. total surplus from shrimp will ________
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease E) increase; not change
In a competitive industry, the industry's short-run supply curve is
A. the vertical sum of the marginal cost curves. B. the horizontal sum of the marginal cost curves. C. determined by the average variable cost curve. D. determined by the average total cost curve.
All of the following are major sources for financing public education EXCEPT
A. income taxes. B. government fees. C. property taxes. D. sales taxes.
Compared to consumption spending, investment historically has tended to be
A. more variable. B. greater. C. stagnant. D. more stable.