A rent ceiling results in a shortage. As a result, which of the following do you expect?
A) The shortage will persist as long as the ceiling is in effect.
B) Discrimination as landlords choose their tenants, possibly based on race, age, or gender.
C) A black market for apartments whereby higher rents are obtained through various other charges.
D) All of the above would be expected.
D
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Suppose the price elasticity of demand for cigarettes is -0.4. The FDA decides to regulate tobacco production, which increases the price of cigarettes and causes the quantity of cigarettes demanded to decrease by 25 percent
What is the percentage increase in price which would lead to the 25 percent decrease in quantity demanded? If the price elasticity was -4, what would be the percentage increase in price?
If an issuer has the right to pay off a bond before its maturity, the bond is
A) convertible. B) speculative. C) callable. D) reversible.