A price ceiling established below the market clearing price will usually cause
A. no change in the market clearing price.
B. an excess supply.
C. nonprice rationing.
D. a decrease in the market clearing price.
Answer: C
Economics
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Which statement best defines the classical perspective?
a. Aggregate supply determines aggregate demand. b. Aggregate demand does not matter for anything. c. Aggregate supply determines real variables such as output. d. Aggregate demand determines all endogenous variables.
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The foreign exchange rate affects agriculture because
A) A weaker dollar makes depresses the export demand for U.S farm commodities. B) A stronger dollar enhances the export demand for U.S. farm commodities. C) A weaker dollar makes imports of inputs used by U.S. farmers. D) None of the above.
Economics