Assume no price ceiling exists and a market is in equilibrium. Then a price ceiling is established which is below the market equilibrium. What would result?
a. Shortage.
b. Equilibrium.
c. Surplus.
d. Equity.
a
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Relative purchasing power parity occurs when
A) purchasing power parity holds between every two countries. B) purchasing power parity only holds in recessions. C) the nominal exchange rate is constant. D) the real exchange rate is constant.
To avoid a rule-of-reason violation, the manager of a designer women's clothing firm should not undertake which of these actions without first speaking to an attorney?
A) enter into an agreement with another designer women's clothing firm to set the price of the clothing B) enter into an agreement with another designer women's clothing firm to only sell in certain areas of the world C) enter into an agreement with another designer women's clothing firm not to sell to a particular customer D) enter into an agreement with a distributor about the minimum price the distributor can resell the clothing
The theory of the long-run in perfect competition helps to provide a rationale for the belief in a limited role for government in society
a. True b. False Indicate whether the statement is true or false
Which of the following is usually a durable good?
a. a unit of labor b. the interest rate c. a depletable resource d. a capital good