A binding price ceiling is:
a. set with the aim of increasing the consumer surplus.
b. set at the equilibrium price level

Refer to Figure 2-15. In the circular flow diagram, economic agents M represent

A) firms. B) product markets. C) factor markets. D) households.

For profit-maximizing, competitive firms, the demand curve for each factor of production equals the value of the marginal product of that factor

a. True b. False Indicate whether the statement is true or false