Consider the monopoly in the figure below with price regulated at $2 per unit. The regulated price will result in a:  

A. surplus of 2 units.
B. surplus of 5 units.
C. shortage of 2 units.
D. shortage of 5 units.

Answer: D

Economics

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Lesley buys 6 cappuccinos per week when her income is $900 per week and buys 8 cappuccinos per week when her income is $1100 per week. For Lesley, cappuccinos are a(n) ________ good

A) normal B) luxury C) inferior D) essential E) substitute

Economics

Compared with a monopolist, the demand curve faced by a monopolistically competitive firm is

A) more elastic. B) more inelastic. C) perfectly elastic. D) perfectly inelastic.

Economics