Why does a price ceiling set below the equilibrium price of a good lead to a shortage of the good in the market?
What will be an ideal response?
A price ceiling is set below the market price of the good. At the lower price, the quantity demanded of the good increases while the quantity supplied falls. As a result, a shortage of the good occurs in the market.
Economics
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Someone in Germany has just ordered a U.S. car to be exported to Germany. In the U.S. balance of payments, this purchase is a(n)
A) accounting identity. B) special draw. C) surplus item. D) deficit item.
Economics
Marginal land is land
a. that is unprofitable under any circumstances. b. that is the most productive in the area. c. that is on the borderline of profitability. d. of average productivity.
Economics