Price ceilings are adopted in most cases because
A) the government views the current equilibrium price as too high for consumers.
B) the government wants to create surpluses.
C) the government favors a non-intervention policy.
D) producers need incentives to produce more of the good or service.
A
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Use the supply and demand curves depicted in following graph for a competitive market to answer the question below.
If the government imposed a price ceiling of $15, then buyers will be intending to buy ________, but they will be able to legally buy ________.
A. 24 units, more than 24 units B. 30 units, 24 units C. 36 units, 24 units D. 36 units, 30 units
Which of the following is a result of government price controls?
A) Some people win and some people lose. B) The deadweight loss from price ceilings is greater than the deadweight loss from price floors. C) Price controls increase economic efficiency. D) Price controls benefit poor consumers but harm producers and wealthy consumers.
In the long run, total fixed cost will:
a. remain constant. b. increase. c. decrease. d. not exist by definition.
If one player defects in a repeated game, and his opponent is following a tit-for-tat strategy, we can predict the opponent will:
A. renegotiate. B. cooperate and try to get his opponent to follow. C. defect in the next round. D. collude.