Which of the following price ceilings would be binding in this market?
A. $14
B. $12
C. $8
D. $10
C. $8
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If a price ceiling is introduced in the market for milk below the market equilibrium price, then the producer surplus made by dairy farmers
A) will increase. B) will decrease. C) will not change. D) might increase or decrease depending on whether the demand for milk increases or decreases. E) might increase or decrease depending on whether the supply of milk decreases or increases.
If a decrease in price decreases a monopolist's total revenue, then
A) demand is elastic. B) demand is inelastic. C) demand is unit elastic. D) the law of demand is violated.
The wartime demand for manufacturing goods directly impacted the economy in which of the following ways?
(a) Increased demand for factory workers (b) Increased demand for imported goods (c) Decreased demand for agricultural goods (d) All of the above
Which economic concept explains why a large drugstore chain can produce at a lower average cost than Whoville Pharmacy, an individually owned drugstore?
a. increasing marginal returns b. diminishing marginal returns c. economies of scale d. diseconomies of scale e. constant returns to scale