The imposition of price ceilings on a market often results in
a. an increase in investment in the industry.
b. a persistent surplus in the market.
c. an increase in expenditures in the black-market.
d. lower prices being offered on the black market.
C
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Always There Wireless is wireless monopolist in a rural area. There are 200 customers, each of whom has a monthly demand curve for wireless minutes of Qd = 200 - 100P, where P is the per-minute price in dollars and Q is the number of wireless minutes. The marginal cost of providing the wireless service is $0.25 per minute. If Always There charges $0.50 per minute and the largest fixed fee that it can at that price, what is the difference in total profit compared to when it charges $0.25 per minute and the largest fixed fee that it can at that price?
A. Profit is the same in both cases, and it is equal to zero. B. Profit is the same in both cases, and it is negative. C. Profit is $626 higher at a price of $0.50. D. Profit is $626 higher at a price of $0.25.
When a banker accepts a deposit of $1,000 in cash and puts $200 aside as required reserves and then makes a loan of $800 to a new borrower, this set of transactions
A. decreases the money supply by $1,000. B. decreases the money supply by $200. C. does not change the money supply. D. increases the money supply by $200. E. increases the money supply by $800.
Your roommate tells you she's going to join the gym next week. A week and a half goes by and you ask her how the gym is going, and she tells you she's going to wait until the following week. Your roommate's preferences are:
A. better today than tomorrow. B. time inconsistent. C. mistakes. D. considered bad choices.
Saving is disposable personal income spent on investment
a. True b. False Indicate whether the statement is true or false