If the equilibrium price of bread is $2 and the government imposes a $1.50 price ceiling on the price of bread, then:
a. more bread will be produced.
b. there will be a shortage of bread.
c. the demand for bread will decrease.
d. producers will charge $0.50 for bread.
e. $0.50 in tax revenue will be paid for each unit of bread.
b
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For a closed economy with no government, we know that at every level of GDP actual investment equals
A) the difference between planned investment and actual saving. B) the difference between planned saving and actual saving. C) planned investment. D) planned saving.
The above figure shows the apartment market in Big City. A rent ceiling of $1400 per month would
A) create a black market. B) increase search activity. C) not affect the market. D) create a surplus of apartments.
________ is a process of bundling together smaller loans (like mortgages) into standard debt securities
A) Securitization B) Origination C) Debt deflation D) Distribution
It is true that a stable economy occurs when
a. total injections into the circular flow are large enough to make up for government tax leakages. b. total leakages from the circular flow are great enough to offset the effects of government spending. c. total planned leakages from the circular flow are exactly equal to total planned injections into the circular flow. d. actual saving is equal to planned investment.