Which of the following would happen if a law were passed imposing a price ceiling that holds the interest rate charged on credit cards at a rate below the prevailing market rate?
a. The quantity demanded of credit card debt will decrease from its original level.
b. The quantity supplied of credit card debt will increase from the original level.
c. The quantity demanded will exceed quantity supplied.
d. The quantity demanded and supplied of credit card debt would not change.
c. The quantity demanded will exceed quantity supplied.
You might also like to view...
There tends to be ________ relationship between the growth rate of the money supply and the inflation rate
A) an inverse B) a direct C) no significant D) a negative
Which of the following is classified as a final good or service?
i. tires bought by GM to put on new Tahoes ii. mustard bought by Subway to put on its sub sandwiches iii. your purchase of online access to the Wall Street Journal A) i and ii B) i, ii and iii C) iii only D) ii and iii E) ii only
Which of the following statements about scarcity is true?
A) Scarcity is not a problem for the wealthy. B) Scarcity is only a problem when a country has too large a population. C) Scarcity refers to the situation in which unlimited wants exceed limited resources. D) Scarcity only arises when there is a wide disparity in income distribution.
Under perfect price discrimination the monopolist produces ________ a perfectly competitive market.
A. the same amount of output as a non-discriminating monopolist as well as B. less output than an imperfectly price discriminating monopolist, but more than C. more output than an imperfectly price discriminating monopolist, but less than D. the same amount of output as would