A price ceiling is
A) the lowest price a seller can charge for a good without losing all her customers.
B) a legal minimum price that can be charged for a particular good or service.
C) a legal maximum price that can be charged for a particular good or service.
D) the lowest price a buyer can pay for a good without having to report the purchase to the government.
Answer: C
Economics
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The above figure shows the demand and cost curves facing a monopoly. If a $100 per unit tax is charged, the loss in welfare resulting from the tax is
A) $250. B) $312.50. C) $1,250. D) $1,562.50.
Economics
In the long run, a year-long drought that destroys most of the summer's wheat crops causes permanently:
A. higher prices. B. lower prices. C. lower output. D. None of these is true.
Economics