Summarize the impacts of prices ceilings and price floors on the free market
What will be an ideal response?
A price ceiling is a maximum price, set by law, that sellers can charge for a good or service. A price floor is a minimum price, set by government, that must be paid for a good or service. Many farmers in the United States rely on price supports or other government programs.
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The supply curve shows
A. the same basic information as the demand curve. B. who will have an opportunity to produce or purchase an item. C. the quantity produced as a function of the price. D. plots of what quantities have been sold over the past few weeks or months.
Demand curves often do not remain stationary; they shift because of changes in other variables.
Answer the following statement true (T) or false (F)
Residential investment plunged quite noticeably ________ the start of the 1973-1975 and 1981-1982 recessions, with the prospect that recent financial deregulation would make it ________ sensitive to future changes in monetary policy
A) after, more B) after, less C) before, more D) before, less
The marginal rate of substitution measures
A) the willingness of a consumer to exchange a good with another consumer. B) the willingness of a consumer to pay the form for a good. C) the value in dollars of the last unit of good obtained by the consumer. D) the rate at which a consumer is willing to exchange one good for another.