With an increase in the demand for a good, if prices are not allowed to increase:

A) social surplus will be maintained at maximum.
B) there will be no incentive for firms to increase the quantity supplied of the good.
C) a surplus will occur in the market.
D) there will be an increase in overall efficiency in the market.

B

Economics

You might also like to view...

The American Revolution and Constitution resulted in

(a) a dramatic change in laws and the ownership of property. (b) greatly expanded rights for wage workers and indentured servants. (c) the elimination of a land-owning aristocracy. (d) very little major change with respect to laws and ownership of property, though there was a strengthening of property rights.

Economics

Assume a firm lowers price below marginal cost to deter entry

A) This strategy is not credible. B) This strategy is credible. C) This strategy is illegal. D) This strategy is immoral.

Economics