When a price ceiling which had been set below equilibrium price is removed, what happens next?
A. quantity supplied rises
B. quantity demanded rises
C. supply rises
D. demand rises
A. quantity supplied rises
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Why might a firm remain in operation even if it is earning zero economic profit?
What will be an ideal response?
Between 1917 and 1982, the US ran a financial account deficit
a. True b. False
As a result of a shortage,
A. Producers reduce supply. B. Producers increase output and raise price. C. Government purchases decrease. D. Consumers increase demand for the product.
Use the following figure showing the domestic demand and supply curves for product B in a hypothetical economy to answer the next question,
After trade, at a world price of Pw, the net gain of consumer surplus equals area(s)
A. B + C. B. D. C. B + C + E + F. D. E + F.