The harmful effect of a price ceiling to ________ is ________.
A. producers; the selling price of the product is above the equilibrium price
B. consumers; the ceiling creates a shortage of the product
C. producers; the ceiling creates a surplus of the product
D. consumers; the selling price of the product is above the equilibrium price
Answer: B
You might also like to view...
One trend in labor markets is:
A. a slowdown in real wage growth in the United States since 1973. B. decreasing wage inequality in the United States. C. a decrease in average real wages in the United States and other industrial countries. D. weak rates of job creation in the United States since 1980.
Refer to Figure 18.3. In autarky, the maximum amount of scooters that Livonia can produce is
A) 120. B) 100. C) 80. D) 40.
Assume the elasticity of of supply for a particular good has been estimated to equal 1.8. In this case, a 10 percent increase in product price would cause the quantity supplied to:
A) decrease by 1.8 percent. B) increase by 1.8 percent. C) decrease by 18 percent. D) increase by 18 percent.
The above figure shows the market for a particular good. If the market is controlled by a perfect-price-discriminating monopoly, social welfare equals
A) A. B) A + B + C. C) A + B + C + D + E. D) zero.