Suppose the government imposes a price ceiling on gasoline that is less than the equilibrium price. As a result
A) the price of gasoline rises to the equilibrium price.
B) there is incentive for buyers to undertake search activity.
C) the supply of gasoline will increase and the supply curve will shift rightward.
D) the demand for gasoline will decrease and the demand curve will shift leftward.
B
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When there is a decrease in demand,
A. the demand curve shifts to the right of the original demand curve. B. the demand curve rotates clockwise. C. the demand curve shifts to the left of the original demand curve. D. the demand curve rotates counterclockwise. E. a lower price has increased the amount of the good that consumers will buy.
What is intertemporal comparative advantage?
What will be an ideal response?
The more inelastic the schedule, the greater the percentage of the tax that is borne on the other side of the market
a. True b. False
When there is an external benefit, the unregulated market
A) overproduces the good or service. B) underproduces the good or service. C) reaches the most efficient solution. D) maximizes public welfare.