One likely result of a price ceiling is that
a. an excess supply of the good results
b. the price would be above the equilibrium price
c. the price would be the equilibrium price
d. the good must be rationed
e. the supply curve shifts to the right
D
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If the demand for a product is elastic, then a rise in price will
a. cause total spending on the good to increase. b. cause total spending on the good to decrease. c. keep total spending the same, but reduce the quantity demanded. d. keep total spending the same, but increase the quantity demanded.
Refer to the above graph. Which factor will shift AD1 to AD2?
A. An increase in real interest rates. B. An increase in household indebtedness. C. An increase in national income abroad. D. An increase in business taxes.
Suppose an excise tax is imposed on product X. We expect this tax to:
A. increase the demand for complementary good Y and decrease the demand for substitute product Z. B. decrease the demand for complementary good Y and increase the demand for substitute product Z. C. increase the demands for both complementary good Y and substitute product Z. D. decrease the demands for both complementary good Y and substitute product Z.
TARP, created in 2008, stands for:
A. Toxic Asset Relief Program B. Troubled Asset Recovery Plan C. Toxic Asset Reinvestment Policy D. Troubled Asset Relief Program