If a price ceiling is imposed above the equilibrium price, what is the effect?
a. There is no visible effect on the market outcome.
b. A shortage results.
c. A surplus results.
d. The quantity demanded will decrease.
Ans: a. There is no visible effect on the market outcome.
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The difference between the total willingness to pay for a good and the amount actually spent measures:
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Because information is scarce
A) helps explain why equity contracts are used so much more frequently to raise capital than are debt contracts. B) monitoring managers gives rise to costly state verification. C) government regulations, such as standard accounting principles, have no impact on problems such as moral hazard. D) developing nations do not rely heavily on banks for business financing.