A price ceiling imposed below equilibrium price causes a deadweight loss for society because:
a. buyers benefit at the expense of sellers
b. as a result of the ceiling, units of output are not produced despite the fact that the value to consumers exceeds the production cost.
c. sellers benefit at the expense of buyers.
d. the poor gain at the expense of the rich.
b
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For a product with an external cost, the supply curve
A) represents the various quantities people can buy. B) is the same as the marginal private cost curve. C) is the same as the marginal social cost curve. D) is the same as the marginal external cost curve. E) is undefined.
Some sales managers are talking shop. Which of the following quotations refers to a movement along the demand curve?
A) "Since our competitors raised their prices our sales have doubled." B) "It has been an unusually mild winter; our sales of wool scarves are down from last year." C) "We decided to cut our prices, and the increase in our sales has been remarkable." D) none of the above