Price ceilings
A) cause quantity to be higher than in the market equilibrium.
B) always increase consumer surplus.
C) may decrease consumer surplus if demand is sufficiently elastic.
D) may decrease consumer surplus if demand is sufficiently inelastic.
E) always decrease consumer surplus.
D
You might also like to view...
As a component of aggregate demand, investment refers to the
A) purchase of raw land for later resale B) purchase of stocks and bonds C) purchase of new equipment and additional inventories D) difference between people's income and spending E) dividends paid out to shareholders
Specialization in production is economically beneficial primarily because it:
A. allows everyone to have a job that he or she likes. B. permits the production of a larger output with fixed amounts of resources. C. facilitates trade by bartering. D. guarantees full employment.