?
In Exhibit 3-16, if the market price of chairs is initially $15, a movement toward equilibrium would require:
A. ?no change, because an equilibrium already exists.
B. ?the price to fall below $15 and both the quantity supplied and the quantity demanded to fall.
C. ?the price to remain the same, but the supply curve to shift to the left.
D. ?the price to fall below $15, the quantity supplied to fall, and the quantity demanded to rise.?
Answer: D
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Refer to the above figure. If the government imposes a price ceiling of $60
A) the quantity traded will be 150, and the price will be $40. B) the quantity traded will be 100, and the price will be $60. C) the quantity traded will be 200, and the price will be $60. D) the quantity traded will be 150, and the price will be $60.
Border effects can result from:
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