If the government imposes a price ceiling below the market equilibrium price, which of the following will result?
a. There will be a surplus of the good.
b. The quantity demanded will exceed the quantity supplied.
c. The quantity supplied will exceed the quantity demanded.
d. The demand curve will shift to the left.
b
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Tom spends $20 a month on CDs and magazines. The price of a CD is $6 and the price of a magazine is $4. When Tom maximizes his utility, the marginal utility from CDs is ________ the marginal utility from newspapers
A) the same as B) 1/2 C) 20 times D) 1 1/2 times
In Figure 1 above the Keynesian equilibrium occurs at what output level?
A. Y1
B. Y2
C. Y3
D. it does not occur at any output level in the graph.
If the dollars per peso exchange rate fell,
a. few firms would want to relocate to Mexico b. the demand for pesos would fall c. more Americans would travel to Mexico d. Americans would buy fewer Mexican goods e. the demand for pesos curve would shift inward
Which of the following describes a corporate merger?
a. When two firms join to form a new firm b. When one firm buys another firm c. When a firm splits to form two new firms d. When a firm sells part of itself to another firm