If a legal ceiling price causes the quantity of a good demanded to be greater than the quantity supplied
A) competition among both buyers and sellers is prevented.
B) competition among buyers is prevented.
C) competition among sellers is prevented.
D) competition among buyers will raise the nonmonetary costs of obtaining the good.
D
You might also like to view...
In 2011, apples cost $1.49 a pound. Suppose the CPI was 120 in 2011 and 140 in 2012. If there is no change in the real price of an apple in 2012, what is the price of a pound of apples in 2012?
A) $2.74 B) $1.69 C) $1.66 D) $1.74 E) $1.28
With a rise in government expenditure we
A) move up along an aggregate demand curve. B) move down along an aggregate demand curve. C) shift the aggregate demand curve to the right. D) shift the aggregate demand curve to the left.
Credit histories allow firms to
A) identify high-risk borrowers, so they can be eliminated and interest rates kept down for others. B) increase the number of credit cards issued, and interest rates go up as a result. C) increase the number of credit cards issued, and interest rates go down as a result. D) lower the number of credit cards issued, and interest rates go up as a result. E) increase market power in the credit card industry, raising interest rates.
What is the relevance of the marginal productivity principle in explaining the use of inputs in production?
What will be an ideal response?