The removal of a price ceiling in a market results in:
a. an increase in the market price.
b. a shortage in the market.
c. over-production of the commodity and a surplus.
d. a fall in the market price.
e. abnormal profits for producers.
a
Economics
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In September of 2007, the Federal Reserve Board Open Market Committee voted to lower interest rates for the first time that year. Explain how lower interest rates affect the aggregate demand curve
What will be an ideal response?
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In a problem involving exchange, the contract curve shows
A) all exchanges that make both parties better off. B) the one exchange that makes both parties better off. C) all possible allocations of goods between both parties. D) all possible efficient allocations between both parties.
Economics