In the above figure, the equilibrium price of a paperback book is $6 per book and the equilibrium quantity is 3 million books. The National Literature Board convinces the government to impose a price ceiling of $3 per book
At this price, the quantity of books supplied to the market will be A) 3 million a month and will equal the quantity demanded.
B) less than 3 million a month and will exceed the quantity demanded.
C) less than 3 million a month and will be less than the quantity demanded.
D) more than 3 million a month and will exceed the quantity demanded.
C
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A change in demand means that
a. more will be bought at a lower price. b. a changed amount will be bought at the same given prices. c. less will be purchased at a higher price. d. the quantity demanded changes as the price changes.
The simple Keynesian model
a. overstated the effect of an increase in government spending by neglecting the necessary increase in the interest rate and consequent decline in investment that accompany an increase in government spending. b. understated the effect of an increase in government spending by neglecting the necessary increase in the interest rate and consequent decline in investment that accompany an increase in government spending. c. overstated the effect of an increase in government spending by neglecting the necessary decrease in the interest rate and consequent increase in investment that accompany a decrease in government spending. d. understated the effect of an increase in government spending by neglecting the necessary decrease in the interest rate and consequent decrease in investment that accompany an increase in government spending.
The existence of scarcity means that
A) there are not enough resources to satisfy unlimited human wants. B) firms will increase their production to eliminate the scarcity. C) the government will step in to eliminate the scarcity. D) firms working with the government will allocate resources to eliminate the scarcity.
Intra-industry trade between similar countries produces economic gains because it allows workers and firms to learn and _________ on particular products.
a. innovate b. coordinate c. disseminate d. communicate