Figure 4-14
depicts the milk market. The horizontal line, P, represents a price ceiling imposed by the government. Which of the following is true?
a.
In equilibrium, the quantity demanded is 800 gallons.
b.
At the ceiling price, there is a surplus.
c.
The quantity demanded at the price ceiling will equal the quantity supplied.
d.
The equilibrium price would be $1 per unit without the price ceiling.
e.
The quantity sold will be 500 gallons.
e
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In the futures market, the difference between the price of the futures and the underlying asset is eliminated by
A) speculators. B) hedgers. C) arbitrageurs. D) longs.
The price elasticity of demand
a. is of no use to producers b. tells producers what will happen to total profit if they change product price c. tells producers what will happen to quantity supplied if they change product price d. tells producers what will happen to total revenue if they change product price e. tells producers what will happen to price in the following time period
If all government budgets are balanced, and S is greater than I, then
A) the net international investment position must be positive. B) the financial account must be positive. C) the financial account must be negative. D) the net international investment position must be negative.
Which of the following is likely protected by copyright?
A) Your recipe for chocolate cake B) Your autobiography C) The color scheme for your house D) The names of your children