Which of the following was an effect of the price ceiling placed on gasoline in the U.S. in the 1970s?
A) Car owners started buying luxury cars that were less fuel-efficient as the price of gas was very low.
B) Gas stations ran out of gas as the quantity of gas demanded exceeded the quantity supplied.
C) Those who valued gas the most were able to buy gas under the price ceiling.
D) The inventory of unsold gas increased and gas stations incurred losses.
B
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Total profit is maximized when marginal profit maximized.
Answer the following statement true (T) or false (F)
A tax of $1 on buyers always decreases the equilibrium price by $1
a. True b. False Indicate whether the statement is true or false
In which of the following instances would the deadweight loss of the tax on cartons of cigarettes increase by a factor of 9?
a. The tax on cartons of cigarettes increases from $10 to $11.11. b. The tax on cartons of cigarettes increases from $10 to $20. c. The tax on cartons of cigarettes increases from $10 to $30. d. The tax on cartons of cigarettes increases from $10 to $90.
Employment discrimination leads to the _________________ of labor.
Fill in the blank(s) with the appropriate word(s).