To say that a price ceiling is binding is to say that the price ceiling
a. results in a shortage.
b. is set below the equilibrium price.
c. causes quantity demanded to exceed quantity supplied.
d. All of the above are correct.
d
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Since firms outside an industry cannot have an incentive to enter the industry in equilibrium, firms inside a monopolistically competitive equilibrium must be making zero profit.
Answer the following statement true (T) or false (F)
How have government policies and programs affected the volatility of the business cycle in the United States since 1950? Explain and provide at least two specific examples of policies or programs that may have had an impact
What will be an ideal response?
Distinguish a direct and an inverse relationship. Provide an example of each type of relationship.
What will be an ideal response?
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In the market shown in Exhibit 3-15, the equilibrium price and quantity of good X are:
A. $0.50, 250. B. $2.00, 300. C. $2.00, 100. D. $1.00, 200.