A price ceiling can often be viewed as:
a. the government setting price above market equilibrium price
b. an implicit tax on producers and an implicit subsidy to consumers.
c. the government setting price below market equilibrium price.
d. Both b and c.
d
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Refer to Figure 9.9. Now suppose an import quota of 3000 trucks is imposed. An alternative to the quota that would have the same impact on the number of imports would be a tariff of
A) $2,500. B) $5,000. C) $15,000. D) $20,000. E) $13,125,000.
A linear demand for lake front cabins on a nearby lake is estimated to be: QD = 900,000 - 2P. What is the point price elasticity for lake front cabins at a price of P = $300,000? [HINT: Ep = (?Q/?P)(P/Q)]
a. EP = -3.0 b. EP = -2.0 c. EP = -1.0 d. EP = -0.5 e. EP = 0
If Kobe, an NBA star athlete, earns $10 million per year but has no money in the bank, he has a
A. high income and high wealth. B. low income and high wealth. C. high income and low wealth. D. low income and low wealth.
Which of the following will cause the money multiplier to become smaller?
A) an increase in high powered money B) a decrease in the ratio of reserves to checkable deposits C) an increase in the public's preference for checking deposits as opposed to holding currency D) a reduction in high powered money E) none of the above