Figure 4-17
Refer to . Suppose a price ceiling of $4.50 is imposed. As a result,
a.
there is a shortage of 15 units of the good.
b.
the demand curve will shift to the left so as to now pass through the point (Q = 35, P = $4.50).
c.
the situation is very much like the one created by a binding minimum wage.
d.
the quantity of the good that is bought and sold is the same as it would have been had a price floor of $7.50 been imposed.
d
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How is the market demand curve for new capital derived?
What will be an ideal response?
The location of the product supply curve depends on the:
A. production technology. B. number of buyers in the market. C. tastes of buyers. D. location of the demand curve.
Refer to Figure 18.1. The United States has a comparative advantage in the production of
A) bicycles. B) hang gliders. C) both bicycles and hang gliders. D) neither bicycles nor hang gliders.
Income inequality is indicated by a Lorenz curve that:
a. bows up, away from the line of income equality. b. bows down, away from the line of income equality. c. lies parallel to the line of income equality. d. coincides with the line of income equality. e. approaches the vertical axis.